Assume six firms comprising an industry have market shares of 30,30,10,10,10,and 10 percent.The Herfindahl-Hirschman Index for this industry is ________.

Question

Quizplus · Accepted Answer

The Herfindahl-Hirschman Index (HHI) is calculated by summing the squares of the market shares of all firms in the industry. In this case: (30^2) + (30^2) + (10^2) + (10^2) + (10^2) + (10^2) = 900 + 900 + 100 + 100 + 100 + 100 = 2,200.

Assume Six Firms Comprising an Industry Have Market Shares of 30,30,10,10,10,and