Question

Suppose that the distribution of sales within an industry is as shown in the following​ table:

Firm	Share of Total Market Sales
A	1717
B	1212
C	1313
D	1010
E	1010
F	1010
G	88
H	77
All others	13
Total	​100%

There are 13​ "All others" in the industry in the above​ table, each of which has a share of sales equal to 1 percent.

The value of the​ Herfindahl-Hirschman Index for this industry is

nothing.

​(Enter your response as a whole​ number.)

Enter your answer in the answer box.

Answer 1

HHI = 1299

Firm	Share of Total Market Sales	% share of market sales
A	1717	20%
B	1212	14%
C	1313	16%
D	1010	12%
E	1010	12%
F	1010	12%
G	88	1%
H	77	1%
I	74.37	1%
J	74.37	1%
K	74.37	1%
L	74.37	1%
M	74.37	1%
N	74.37	1%
O	74.37	1%
P	74.37	1%
Q	74.37	1%
R	74.37	1%
S	74.37	1%
T	74.37	1%
U	74.37	1%
	8403.81	100%

HHI is found by squaring the individual market sharing and totaling it.

A to H forms 87% and other 13 firms makes 13%, making the share to 8403.81

So,

HHI = 20^2+14^2+16^2+12^2+12^2+12^2+1^2+1^2+1^2+1^2+1^2+1^2+1^2+1^2+1^2+1^2+1^2+1^2+1^2+1^2+1^2

= 1299