The timeshare vacation industry includes four different companies with the following market share:
a) What is the Herfindahl-Hirschman Index for the timeshare vacation industry?
b) If companies Phase 2 and Phase 3 are going to merge, what will the increase in the Herfindahl-Hirschman Index be?
c) Would this be a merger that would reduce competition? Support your answer.

Question

The timeshare vacation industry includes four different companies with the following market share:
  a) What is the Herfindahl-Hirschman Index for the timeshare vacation industry?
b) If companies Phase 2 and Phase 3 are going to merge, what will the increase in the Herfindahl-Hirschman Index be?
c) Would this be a merger that would reduce competition? Support your answer.

Quizplus · Accepted Answer

The Answer of The timeshare vacation industry includes four different companies with the following market share:
  a) What is the Herfindahl-Hirschman Index for the timeshare vacation industry?
b) If companies Phase 2 and Phase 3 are going to merge, what will the increase in the Herfindahl-Hirschman Index be?
c) Would this be a merger that would reduce competition? Support your answer.

The Timeshare Vacation Industry Includes Four Different Companies with the Following