--%>
Assignment Help - homework help

Describe the Hirfindahl-Hirschman Index

Describe the Hirfindahl-Hirschman Index?
The Hirfindahl-Hirschman Index, or HHI, is the standard measure employed by economists to evaluate market concentration. The greater the level of concentration amongst competitors, the higher the HHI. The HHI runs on a scale from zero (representing extreme competitiveness) to 10,000 (demonstrating monopoly). The HHI is determined by squaring (multiplying by itself) the market share of every firm in a market, and then adding up the results.

                                        Example Calculation for a Hypothetical Market With HHI of 2,000    

448_Hirfindahl-Hirschman Index Source.png

                                               (Hirfindahl-Hirschman Index Source: Federal Reserve)

   Related Questions in Finance Basics

  • Q : What is Workload Budget Adjustment

    Workload Budget Adjustment: Any adjustment to the presently authorized budget obligatory to maintain the level of service needed to fund a Workload Budget, as stated in the Government Code Section 13308.05. A workload budget adjustment is as well term

    		•
  • Q : Describe the P-E valuation method

    Describe the P/E valuation method. Under what conditions a stock should be valued by using this method?The P/E ratio denotes how much investors are keen to pay for each dollar of a stock's earnings. A high P/E ratio denotes that investors belie

    		•
  • Q : Seasonal variations and secular trends

    Normal 0 false false

    		•
  • Q : Define Limited-Term Position

    Limited-Term Position (LT): Any place that has been authorized only for a particular length of time with a set termination date.Limited-term positions might be authorized throughout the budget procedure or in transactions approved by the D

    		•
  • Q : Down sloping and upsloping Normal 0

    Normal 0 false false

  • Q : Explain Public Service Enterprise Fund

    Public Service Enterprise Funds: For legal base accounting purposes, the fund categorization which identifies funds utilized to account for the transactions of self-supporting enterprises which render goods or services for a direct charge to user (tha

    		•
  • Q : Surpluses drive prices up- shortages

    Normal 0 false false

  • Q : Finance powerpoint Hi, I am a

    Hi, I am a management student studying in a business school. I have given a case study (attached below in PDF) as evaluation. I was able to get an English version but since i am not familiar with the subject i don't know how to solve this. I would like to know if you can provide any solution f

    		•
  • Q : Describe the status of cyclically

    Assume the full-employment, non-inflationary level of real output is GDP3 (not GDP2). If the economy is operating at GDP2 instead of GDP3, describe the status of its cyclically adjusted budget? The status of its present fiscal polic

    		•
  • Q : Financial Account & International fund

    Question: The Financial Account captures international fund flows due to i._____. ii. Briefly Explain? Answer: (i)    Purchase and selling of assets (ii)   The Financial Account captures th

    		•