Specific measurement of market concentration, that is, of the extent to which a small number of firms account for a large proportion of output. The HHI is used as one possible indicator of market power or competition among firms. It measures market concentration by ad-ding the squares of the market shares of all firms in the industry. Where, for example, in a market five com-panies each have a market share of 20%, the HHI is 400 + 400 + 400 + 400 + 400 = 2 000. The higher the HHI for a specific market, the more output is concentrated within a small number of firms. In general terms, with an HHI below 1000, the market concentration can be characterised as low, between 1000 and 1800 as moderate and above 1 800 as high.
© www.consiliulconcurentei.ro
RO: Indicele Herfindahl-Hirschmann (IHH)
FR: Indice de Herfindahl– Hirschmann (IHH)
HU: Herfindahl-Hirschmann index (IHH)
