Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Hi, I would like help with this Herfindahl and concentration problem (see attached file)! Thank you in advance 1) Herfindahl indices and concentration a- Consider
Hi, I would like help with this Herfindahl and concentration problem (see attached file)!
Thank you in advance
1) Herfindahl indices and concentration a- Consider an industry with 12 firms. One firm has a market share of 30%. One firm has a market share of 10%. One firm has a market share of 15%. The other nine (small firms) have shares of 5%. What is the HHI of this industry? b- Suppose that two of the small firms were to merge and that the post-merger market shares remain the same after the merger. What is the increase in HHI from this merger? Would the merger be presumed to be anticompetitive given the Horizonal Merger Guidelines? c- Suppose that one of the small firms has a strategy in which it acquires small firms, one after another. How many small firms can it absorb, before reaching the threshold where the next acquisition is presumed to be anticompetitive under the GuidelinesStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started