Exercise of Week 5 The dataset Download datasetattached provides the seat capacity scheduled by U.S. and foreign airlines on the U.S. domestic and international routes in 2019, and in 2021, respectively. The excel file also contains data for Chinese and foreign airlines on the Chinese domestic and international routes in 2019, and 2021. Using the dataset provided, calculate the HHI market concentration index for U.S. and for China on their respective domestic and international routes in 2019, and 2021. Compare the HHI values on the U.S. domestic and on the U.S. international routes before and after the pandemic. Which type of routes is more concentrated, and whether the route concentration level has increased in 2021 as compared to 2019? Do you find similar results based on your calculation for Chinese domestic routes and international routes? Compare the market concentration on the U.S. routes with those on the Chinese routes. Which one has a higher market concentration? Write a short paragraph (at least 100 words) to summarize your findings.

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To calculate the HerfindahlHirschman Index HHI for market concentration we first need to determine t... View the full answer