A given market was initially segmented evenly among 22 firms (Phase 1). Five years later, the market was still segmented evenly among competing firms, but there were now only 9 firms (Phase 2). Eventually 7 firms emerged with equal portions of the market (Phase 3), but a move toward deregulation of the industry has prompted two of the firms to merge. (Note: The HHI is measured in units of %2. For example, 50% x 50% = 2,500%2 (or, in decimal form, 0.50 x 0.50 = 0.25). To make the conversion from decimal to percentage form mathematically, multiply the answer by 10,000; using the same example, this yields 0.50 x 0.50 x 10,000 = 2,500.)
Determine the Herfindahl-Hirschman Index for the first phase. Round your answer to two decimal places.
Determine the Herfindahl-Hirschman Index for the second phase. Round your answer to two decimal places.
Determine the Herfindahl-Hirschman Index for the third phase. Round your answer to two decimal places.
Determine the Herfindahl-Hirschman Index with two merging firms. Round your answer to two decimal places.