HHI, Managerial Economics

Suppose Fiat recently entered into an Agreement and Plan of Merger with Case for $4.3 billion. Prior to the merger, the market for four-wheel- Drive tractors consisted of five firms. The market was highly concentrated, with a herfindahl-Hirschman index of 3,025. Case’s share of the market was 27 percent, while Fiat comprised just 13 percent of the market. If approved, by how much would the HHI increase?
Posted Date: 7/8/2012 4:53:29 PM | Location : United States

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