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The diaper industry is characterized by 8 firms producing identical diapers. Let si denote the
percentage market share of firm i,i=1,2,8. It has been recently observed that the market shares
are given by a) Compute the concentration measures I4 and IHH for this industry. b) Suppose
now firm 2 and firm 3 merge and become a single firm labeled firm 23 . Compute the post-
merger concentration measures values I^4 and I^HH. c) Compute the change in concentration
resulting from this merger, I4=defI^4I4 and IHH=defI^HHIHH

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The diaper industry is characterized by 8 firms producing identical d.pdf

  • 1. The diaper industry is characterized by 8 firms producing identical diapers. Let si denote the percentage market share of firm i,i=1,2,8. It has been recently observed that the market shares are given by a) Compute the concentration measures I4 and IHH for this industry. b) Suppose now firm 2 and firm 3 merge and become a single firm labeled firm 23 . Compute the post- merger concentration measures values I^4 and I^HH. c) Compute the change in concentration resulting from this merger, I4=defI^4I4 and IHH=defI^HHIHH