a Is it appropriate to think of all of Australia as a single

(a) Is it appropriate to think of all of Australia as a single geographic market for natural gas? If so explain why. If not how would you define the relevant geographic markets? (b) Based on your geographic market definition(s) above, would you expect the Santos/SAGASCO merger to increase market power? (c) Should regulators be concerned that Santos/SAGASCO would have a controlling share of the MOOMBA processing facility? Why or Why not?

Solution

1) Geographical segmentation segments a market based on the geography. The essential condition is that to recognize the market and provide dedication support and strategies for a maket that share similarties. Australian market cannot be considered as single geographical location becuase there is no single australian gas market as well as the markets and polulations are concentrated in few regions of the continent Categorizing it as single geographical market segment will not make any sense considering the facts.There should be different regional markets such as