Explore BrainMass
Share

Explore BrainMass

    Spreadsheet for Calculating Herfindahl-Hirshman Index (HHI)

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    The problem gives this chart:

    Competitor
    Rank
    Market A Market B Market C Market D
    1 40 25 10 50
    2 30 25 10 25
    3 15 10 8 10
    4 10 10 8 10
    5 5 6 8 2
    6 5 8 2
    7 5 8 1
    8 5 8
    9 5 8
    10 4 8
    11 8
    12 8
    Totals 100 100 100 100

    Calculate the pre-merger HHI measures for each market. How would a merger affect a market's HHI?

    © BrainMass Inc. brainmass.com April 3, 2020, 10:47 pm ad1c9bdddf
    https://brainmass.com/economics/monopolies/spreadsheet-for-calculating-herfindahl-hirshman-index-hhi-460746

    Solution Preview

    See the attached file for the calculations.

    HHI is a measure of market concentration. You calculate HHI by summing the squares of the market shares. You can express the ...

    Solution Summary

    This solution explains the Herfindahl-Hirshman Index (HHI) and gives an Excel spreadsheet that can be used to calculate the HHI for any market, both before and after a merger.

    $2.19

    ADVERTISEMENT