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HHI An industry consists of 2 firms playing a Cournot game. Both firms initially have market shares of 50% each. A third firm enters the

HHI An industry consists of 2 firms playing a Cournot game. Both firms initially have market shares of 50% each. A third firm enters the market. In the new Cournot equilibrium, the market shares are 10% for firm 1, 10% for firm 2 and 80% for the new firm ( firm 3). How has the Herfindahl-Hirschman Index (HHI) index changed as a result of the entry of the third firm? Explain briefly

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