Question

Find the data of the market shares of the firms for any industry in any country around the world you wish. Then, calculate the concentration ratio CR3 and the HerfindahlHirschman Index. Important: Indicate the source of your data. (webpage, newspaper, magazine etc.)

Answer 1

Data is taken of the automobile industry in the USA and market share of the companies in this industry of year 2017.

Concentration ratio (CR3) = sum of the market share of top 3 companies

Concentration ratio (CR3) = Market share of GM + Market share of Ford Motors + Market share of Toyota

Concentration ratio (CR3) = 17.6 + 14.2 + 14.2

Concentration ratio (CR3) = 46%

HH index = sum of the square of the market share of companies

HH Index = 17.6^2 + 14.2^2 + 14.2^2 + 12.1^2 + 9.9^2 + 9.6^2 + 7.5^2 + 3.8^2 + 3.7^2 + 2.2^2

HH Index = 1138.84

Reference:

Market share held by selected automobile manufacturers in the United States in 2017. Retrieved from: https://www.statista.com/

Full web URL cannot be given due to the answering board guidelines.