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MERGERS AND PUBLIC POLICY Calculate the Herfindahl-Hirschman Index (HHI) for each of the following industries. Which industry is the most concentrated? a. An industry with five firms that have the following market shares: 50 percent = 2500, 30 percent = 900, 10 percent = 100, 5 percent = 25, and 5 percent = 25 HHI = 3550 b. An industry with five firms that have the following market shares: 60 percent = 3600, 20 percent = 400, 10 percent = 100, 5 percent = 25, and 5 percent = 25 HHI = 4150 (Most Concentrated) c. An industry with five firms, each of which has a 20 percent market share: 20 percent = 400, 20 percent = 400, 20 percent = 400, 20 percent = 400, 20 percent = 400 HHI = 2000
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