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Suppose That Emergency Room Services in a City Are Provided

Question 15

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Suppose that emergency room services in a city are provided by three hospitals. Two of the hospitals each have a market share of 40% and the third hospital has a market share of 20%. Compute the pre-merger and post-merger HHI for this market if the two largest hospitals merge.

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HHI = ∑(S)2, where S is each firm's marke...

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