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Herfindahl-Hirschman Index

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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.


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The auditor market is considered monopolistic based on a Herfindahl-Hirschman Index of 2,430 for the total insurance industry.
Notably, the new notification threshold represents a departure from the thresholds proposed in the draft guidelines released in February, which were based on the quantitative Herfindahl-Hirschman Index (
The auditor market is considered monopolistic based on a Herfindahl-Hirschman Index (
 
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