Question
Assume there are 10 equally sized hospitals in a market area. 1. Calculate the HHI. 2. Consider the case where two hospitals in the market
Assume there are 10 equally sized hospitals in a market area.
1. Calculate the HHI.
2. Consider the case where two hospitals in the market area inform the Department of Justice (DOJ) that they wish to merge. (a) Assume the merger goes through. Recalculate the HHI.
(b) Compare two HHI you computed. How does the market concentration change?
(c) Assume the DOJ guideline to contest mergers is an HHI greater than or equal to 2500. Will the DOJ contest the two hospital merger?
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To calculate the HerfindahlHirschman Index HHI 1 Calculate the HHI Given that there are 10 equally s...
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Data Analysis And Decision Making
Authors: Christian Albright, Wayne Winston, Christopher Zappe
4th Edition
538476125, 978-0538476126
