Industry A has market shares of 50, 30, and 20 . Industry B has ...

[stevenposner]

Industry A has market shares of 50, 30, and 20 . Industry B has market shares of 45, 40, and 15 . where si is the market shares of the i-th firm in the industry.
 a. The Herfindahl index for A is 100.
  b. The Herfindahl index for A is 3,800.
  c. The Herfindahl index for B is 3,600
  d. The Herfindahl index for A is greater than for B.
  e. The Herfindahl index is for B is 4,000.

Question 2

Bid-rigging is more likely when
 a. auctions are larger
  b. auctions are infrequent
  c. auctions generate different sets of potential bidders
  d. the auctioneer is paid a fixed fee rather than on commission

[AngeliqueG]

Answer to Question 1

b

Answer to Question 2

d