To calculate the Herfindahl Index for this industry, simply square each of the market shares, expressed in decimals, then add the results together. In other words: (0.30)^2+ (0.30)^2 + (0.20)^2 + (0.15)^2 + (0.05)^2 = 0.245. Therefore, the Herfindahl index for this industry is 0.245. The HHI value can range anywhere from near 0 up to 10,000. A higher index value means that the industry is considered to be closer to monopoly conditions. The Herfindahl Index formula is calculated by squaring the market share for each firm (up to 50 firms) and then summing the squares. Here's an example: Let's say there are four grocery stores in your town: Albert's, Bob's, Carl's and Donald's. The Herfindahl-Hirschman Index, or HHI, looks at the market concentration in an industry to determine if the industry provides healthy competition or is veering close to being a monopoly.

## Why is the largest possible value of the Herfindahl-Hirschman Index (HHI) 10,000? A. An HHI of 10,000 corresponds to a monopoly--that is, a single firm with 100% market share. B. An HHI of 10,000 corresponds to 100 firms with 1% market share each. C. The Justice Department assigns a value of 10,000 to the most concentrated industry, and then

Created with Highcharts 8.0.0 Atomic Number HHI Herfindahl-Hirschman Index ( HHI) for all elements values calculated from USGS mineral commodity statistics, Key words: market power, Lerner index, Herfindahl-Hirschman index, the value of HHI is multiplied by 10000 and then HHI indices in the range below 1000 If Firm H and Firm A merge, what is the new Herfindahl - Hirschman Index for this market? c. Calculate the index value for each market described below. a. for every value of the Herfindahl-Hirschman Index. (since. ( ). ( ) n nn n. HHI the distribution of the banks in the market, the value of the index is sensitive to the Formula 1. Inverse Herfindahl-Hirschman Index. 4 The non-normalized Herfindahl Index's lower range of 1/N is due to the fact that its minimum value cannot be

### consider an industry that is made up of six firms with the following market shares: firm A- 50%, Firm B - 20%, Firms C & D 10% each and Firms E & F 5% each. What is the value of the Herfindahl-Hirschman Index and how will the industry be categorized?`

1 Jul 2019 The Herfindahl-Hirschman Index (HHI) accounts for both factors. It also gives analysts a single numerical score they can work with, ranging