Herfindahl-Hirschman Index


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Herfindahl-Hirschman Index (HHI)

A measure of market concentration, it depends on the number of firms and their size relative to the market. It is calculated by summing up the squares of market shares of each firm. For example, a market where the HHI comes to more than 1800 will be considered a concentrated market. Mergers or acquisitions that change the HHI by more than 100 points in a concentrated market may raise antitrust concerns within the Department of Justice.

Herfindahl-Hirschman Index

An index of market concentration the U.S. Department of Justice uses to determine whether a monopoly is forming. The scale goes from zero to 10,000, with 10,000 indicating that a single company controls 100% of the market share in a given industry. An HHI of less than 1000 indicates a market with little concentration, which the Justice Department prefers. Any merger or acquisition leading to an increase of more than 100 when the HHI was previously greater than 1,800 may lead to antitrust action against the company involved.
References in periodicals archive ?
In second place, the Herfindahl-Hirschman index (HHI) of market concentration, ranging from 1 (extreme concentration) to 0 (no concentration), is a country-specific index, unrelated to market concentration in other countries.
Regarding level of competition, there are 3 indicators for measuring the level of competition, including the number of hospitals, the Herfindahl-Hirschman Index (HHI), and concentration ratio.
0% Source: Begemann, 2015; USDA-AMS, 2015 Table 3: Herfindahl-Hirschman Index Values Before and After Proposed Mergers Com Soybeans Cotton Before 2=696 2=36Q 2=804 After 3,110 2=705 5.
Instead of dead baby seals, hungry children, jailed journalists, or tortured prisoners, antitrust offered the Herfindahl-Hirschman Index.
Armenia the Herfindahl-Hirschman Index (a measure of the size of firms in relation to the industry and
Central to that document is the Herfindahl-Hirschman Index (HHI), calculated by squaring major producers' market shares: [30.
The first approach is to adapt indices of concentration such as Herfindahl-Hirschman index proposed by Kwoka (1977) and Gini index suggested by (Gini, 1921).
88 Metro area 67 74 Small urban area 28 20 Rural area 5 5 Herfindahl-Hirschman Index 0.
In this section, we discuss the strengths and limitations of five commonly-used measures of inequality in the fields that inform public management, roughly in order of their development chronologically, with growing degrees of complexity and applicability: The Gini Coefficient, the Duncan Index of Dissimilarity, the Herfindahl-Hirschman Index, the Blau Index, and the Theil Statistic.
Botswana's banking supervision report for 2013, which was recently published, stated: "The most widely used measure of concentration is the Herfindahl-Hirschman Index (HHI).
Third, it should use the Herfindahl-Hirschman Index (HHI) to measure whether its existing energy efficiency standards have had negative effects on competition in the regulated industries.
Research on concentration in Lithuanian banking sector is based on the most frequently used concentration measures: the Herfindahl-Hirschman index and the k bank concentration ratio.