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Herfindahl Hirschman Index

Herfindahl-Hirschman Index: Concept, How to Calculate, Pros and Cons

January 21, 2025 · Ahmad Nasrudin

What's it: Herfindahl-Hirschman Index (HHI) is a measure of market concentration. You compute it by summing the squares of each firm's market share in the industry. This is an alternative to the n-firm concentration ratio.This index is important

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