Sub: Economics Topic: Micro Economics
Question:
A discussion on using “HHI” indices and concentration ratios to measure
oligopolization and especially market power in an industry.
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Text discussion focused on using “HHI” indices and concentration ratios to measure
oligopolization and especially market power in an industry. Which one is better and why is this
the case?
Solution:
Text discussion focused on using “HHI” indices and concentration ratios to measure
oligopolization and especially market power in an industry. Which one is better and why
is this the case?
HHI – Herfindahl – Hirschman Index
The square of the percentage market share of each firm summed over the largest 50
firms in the market.
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