Calculation Using the Herfindahl-Hirschman Index
Not what you're looking for?
The top 6 firms in an industry have the following market shares:
A 25
B 25
C 20
D 10
E 10
F 5
Firm C wants to buyout Firm F.
Will the Department of Justice likely approve this acquisition?
Calculate the Herfindahl-Hirschman Index (HHI), showing all work.
Purchase this Solution
Solution Summary
The expert calculates using the Herfindahl-Hirschman Index.
Solution Preview
The Herfindahl-Hirschmann Index (HHI) can be computed based on the following formula:
HHI = (Market Share of Company 1)^2 + (Market Share of Company 2)^2 + ... + (Market Share of Company N)^2
The website of the Department of Justice (DOJ) states: "The agencies generally consider markets in which the HHI is between 1,500 and 2,500 points to be moderately concentrated, and consider markets in which the HHI is in excess of 2,500 points to be ...
Purchase this Solution
Free BrainMass Quizzes
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.