i) compute the concentration measure H (Herfindhal index) for this industry ii)
ID: 1125527 • Letter: I
Question
i) compute the concentration measure H (Herfindhal index) for this industry
ii) suppose now that ALL 20 firms in the second group merge and become a single firm. Compute the post - merger concentration measure H, assuming that everything else remain the same
iii) compute the change in concentration resulting from this merger
Concentration Measures 45 26 225 5 1,5 Problem 1, (30 pts) The animal food industry in New York State producing identical dog food (homogeneous product). The latest D observed that the market shares are given by a Ab Do L4 = }kira ed that the al dog food animal food ind, Number of Firms industry in New York State is characterized by 100 firms ueous product), The latest business economic census recently AH 0= 00. 15 26 3020 15 Market share of each firm I 3.0% 1.3% 0.75% 0.25% 0.10% 4.3 +1 meaning that each one of the 15 firms in the first group rms in the second groups has 1.3% of market share, so on and so forth. the 15 firms in the first group has 3% of market share, each one ofExplanation / Answer
i) HHI is 187.08
ii)
iii)
No of firms Market share of each firm HHI-Pre merger HHI-Post merger 1st Ggroup 1 3 9 9 1st Ggroup 2 3 9 9 1st Ggroup 3 3 9 9 1st Ggroup 4 3 9 9 1st Ggroup 5 3 9 9 1st Ggroup 6 3 9 9 1st Ggroup 7 3 9 9 1st Ggroup 8 3 9 9 1st Ggroup 9 3 9 9 1st Ggroup 10 3 9 9 1st Ggroup 11 3 9 9 1st Ggroup 12 3 9 9 1st Ggroup 13 3 9 9 1st Ggroup 14 3 9 9 1st Ggroup 15 3 9 9 2nd group 1 1.3 1.69 676 2nd group 2 1.3 1.69 2nd group 3 1.3 1.69 2nd group 4 1.3 1.69 2nd group 5 1.3 1.69 2nd group 6 1.3 1.69 2nd group 7 1.3 1.69 2nd group 8 1.3 1.69 2nd group 9 1.3 1.69 2nd group 10 1.3 1.69 2nd group 11 1.3 1.69 2nd group 12 1.3 1.69 2nd group 13 1.3 1.69 2nd group 14 1.3 1.69 2nd group 15 1.3 1.69 2nd group 16 1.3 1.69 2nd group 17 1.3 1.69 2nd group 18 1.3 1.69 2nd group 19 1.3 1.69 2nd group 20 1.3 1.69 3rd group 1 0.75 0.56 0.56 3rd group 2 0.75 0.56 0.56 3rd group 3 0.75 0.56 0.56 3rd group 4 0.75 0.56 0.56 3rd group 5 0.75 0.56 0.56 3rd group 6 0.75 0.56 0.56 3rd group 7 0.75 0.56 0.56 3rd group 8 0.75 0.56 0.56 3rd group 9 0.75 0.56 0.56 3rd group 10 0.75 0.56 0.56 3rd group 11 0.75 0.56 0.56 3rd group 12 0.75 0.56 0.56 3rd group 13 0.75 0.56 0.56 3rd group 14 0.75 0.56 0.56 3rd group 15 0.75 0.56 0.56 3rd group 16 0.75 0.56 0.56 3rd group 17 0.75 0.56 0.56 3rd group 18 0.75 0.56 0.56 3rd group 19 0.75 0.56 0.56 3rd group 20 0.75 0.56 0.56 3rd group 21 0.75 0.56 0.56 3rd group 22 0.75 0.56 0.56 3rd group 23 0.75 0.56 0.56 3rd group 24 0.75 0.56 0.56 3rd group 25 0.75 0.56 0.56 3rd group 26 0.75 0.56 0.56 3rd group 27 0.75 0.56 0.56 3rd group 28 0.75 0.56 0.56 3rd group 29 0.75 0.56 0.56 3rd group 30 0.75 0.56 0.56 4th group 1 0.25 0.06 0.06 4th group 2 0.25 0.06 0.06 4th group 3 0.25 0.06 0.06 4th group 4 0.25 0.06 0.06 4th group 5 0.25 0.06 0.06 4th group 6 0.25 0.06 0.06 4th group 7 0.25 0.06 0.06 4th group 8 0.25 0.06 0.06 4th group 9 0.25 0.06 0.06 4th group 10 0.25 0.06 0.06 4th group 11 0.25 0.06 0.06 4th group 12 0.25 0.06 0.06 4th group 13 0.25 0.06 0.06 4th group 14 0.25 0.06 0.06 4th group 15 0.25 0.06 0.06 4th group 16 0.25 0.06 0.06 4th group 17 0.25 0.06 0.06 4th group 18 0.25 0.06 0.06 4th group 19 0.25 0.06 0.06 4th group 20 0.25 0.06 0.06 5th group 1 0.1 0.01 0.01 6th group 2 0.1 0.01 0.01 7th group 3 0.1 0.01 0.01 8th group 4 0.1 0.01 0.01 9th group 5 0.1 0.01 0.01 10th group 6 0.1 0.01 0.01 11th group 7 0.1 0.01 0.01 12th group 8 0.1 0.01 0.01 13th group 9 0.1 0.01 0.01 14th group 10 0.1 0.01 0.01 15th group 11 0.1 0.01 0.01 16th group 12 0.1 0.01 0.01 17th group 13 0.1 0.01 0.01 18th group 14 0.1 0.01 0.01 19th group 15 0.1 0.01 0.01 100 187.08 829.28Related Questions
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