If there are six firms in an industry and the market shares of the firms are 30 percent,25 percent,20 percent,11 percent,10 percent and 4 percent,the Herfindahl index is

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The Herfindahl index is calculated by summing the squares of the market shares of all firms in the industry. For this case: (30^2) + (25^2) + (20^2) + (11^2) + (10^2) + (4^2) = 900 + 625 + 400 + 121 + 100 + 16 = 2,162.

If There Are Six Firms in an Industry and the Market