Final answer:
Greyhound and Trailways likely preferred defining their market broadly, including personal transportation and other modes, to minimize perceived market share and demonstrate a competitive post-merger environment.
Step-by-step explanation:
Some years ago, when Greyhound Lines, Inc. and Trailways Transportation System wanted to merge, they encountered the task of defining their market for regulatory and competitive analysis. There were two potential definitions: one being the market for intercity bus service alone, and the other encompassing a broader scope as the market for intercity transportation, which includes various modes of transport such as personal cars, car rentals, passenger trains, and commuter air flights.
The bus companies likely preferred the broader definition of the market for a couple of reasons. Firstly, defining the market more broadly would minimize the perceived market share that the merged entity would control, making it less likely that antitrust authorities would oppose the merger due to concerns over creating a monopoly or reducing competition. Secondly, acknowledging a broader competitive environment demonstrates recognition of all the transportation options available to consumers, which could justify the merge by indicating that competition would still exist post-merger.