AT&T Witness Calls Government's Case ‘theoretically Unsound' About What Merger Would Cost Consumers

Dallas-based AT&T Inc. went on the offensive to defeat the U.S. lawsuit against the company's proposed takeover of Time Warner Inc., making its economic case that pay-TV prices for consumers will actually fall after the merger.University of Chicago economist Dennis Carlton testified Thursday in Washington that AT&T's acquisition of Time Warner will benefit pay-TV subscribers. He said the analysis done by the Justice Department's expert, Professor Carl Shapiro from the University of California at Berkeley, is riddled with errors."How much confidence should this court have in Professor Shapiro's model?" Randy Oppenheimer, a lawyer for AT&T, asked Carlton."None," said Carlton.  Continue reading...