Differentiated product oligopoly Hospital industry is a differentiated product oligopoly Strict barriers to entry Buildings,technology,staff,administration,etc. Few firms(oligopoly) Services provided by each firm are not perfect substitutes(differentiated products) Herfindahl-Hirschman Index 口HHI=∑s si=market share for a firm If HHI closer to 1 means few firms in the market (highly concentrated) If HHI closer to o means a large number of firms in the market Bhattacharya,Hyde and Tu-HealthEconomicsBhattacharya, Hyde and Tu – Health Economics Differentiated product oligopoly  Hospital industry is a differentiated product oligopoly  Strict barriers to entry  Buildings, technology, staff, administration, etc.  Few firms (oligopoly)  Services provided by each firm are not perfect substitutes (differentiated products)  Herfindahl-Hirschman Index  HHI = ∑ si 2  si = market share for a firm  If HHI closer to 1 means few firms in the market (highly concentrated)  If HHI closer to 0 means a large number of firms in the market