We Help with

  • Finishing Your Science Homework
  • Checking Your Answers
  • Designing an Experiment or Science Project
  • Science Problems Reviewing
  • Lab Report Writing

Did You Know?

How We Work

  • Place Your Order
  • Make a Payment
  • Receive Email Confirmation
  • Get and Review the First Draft
  • Get the Final Document

Why Us

  • 24/7 Access
  • The Best Tutors
  • Variety of Subjects
  • Personal Approach to Your Order

Herfindahl Hirschman Index and Explanation

hhi definition

Herfindahl Hirschman Index is also known as HHI and it means a commonly accepted measure of the market concentration. When it comes to calculations, it is by squaring the market share of every firm that competes in the market and then summing up the resulting numbers. Continue reading to learn more about Herfindahl Hirschman Index and how to get economics homework help.

Short History of Herfindahl Hirschman Index

The United States Justice Department is using the HHI in evaluating the issues of potential mergers. It measures the extent in which market share is being concentrated among many or a few companies. It is about measuring the market concentration of the industry’s 50 biggest firms in determining whether the industry has healthy numbers of nearing monopoly or competitors.

herfindahl hirschman index definition

General Information about Herfindahl Hirschman Index

When it comes to the Herfindahl Hirschman Index HHI calculator, you can calculate it by squaring the share of every competitor in the market and getting the sum of the resulting numbers. For instance, if the market has 4 competitors having a market share of 20%, 30%, 30% and 20%, then the HHI is 2600, wherein it is the sum of 202, 302 + 302 + 202.

herfindahl hirschman index

To know more about the Herfindahl Hirschman Index HHI calculator, you can get more ideas with the brief explanation of HHI. So what is HHI? HHI measures the 50 largest firms’ market concentration in a given industry. In a competitive market, Herfindahl Hirschman index approaches 0. In a monopoly, it approaches 10,000.

Why it matters: Some analysts do some industry analysis in understanding where a certain firm competitive advantage and source of growth comes. The fact is that competition structure is a component of industry analysis. The term HHI is Herfindahl Hirschman index and it is being used by the largest firms in calculating the market share of every firm. It takes into consideration the size distribution of companies in the market.

The companies consider markets, where HHI is between 1,500 up to 2,500 points as moderately concentrated. If it is excess 2,500 points, then it is considered as highly concentrated. Remember all these things so that you can answer your homework better as well as pass your quizzes regarding it.

How Our Service Help with Your Homework and Our Benefits

When your homework gets you frustrated, you probably need online economics help. We are your reliable masters of subjects offering affordable prices and high quality of work. Completing your homework accurately requires professionals with great skills in the field. Our team has years of experience in the industry and has helped students accomplish their HHI homework. So when you need to be guaranteed economics homework help, don’t hesitate to get in touch with us:

  • 24/7 customer support
  • High quality assignment output
  • Affordable rates
  • Experienced homework helpers
  • Money back guarantee

If you need homework help, learn marginal revenue product definition or anything else, all you need to do is to complete the order form and we will work on your assignment and then submit it on time. We understand that such homework in economics is difficult, so let us help you accomplish it with our expert help.

Contact us for professional Herfindahl Hirschman index homework help today!