Herfindahl index(redirected from H 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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Herfindahl indexa measure of the degree of SELLER CONCENTRATION in a MARKET that takes into account the total number of firms in the market and their relative size distribution (share of total market output). See CONCENTRATION MARKET.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005