--%>
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 : Make out this new balance sheet Normal

    Normal 0 false false

  • Q : Explain 3-year Expenditures and

    3-year Expenditures and Positions: The display at the beginning of each departmental budget which presents the different departmental programs by title, dollar totals, places, and source of funds for the past, current, and budget years.

    		•
  • Q : Production possibilities curve based

    Given is a production possibilities table for consumer goods (automobiles) and capital goods (forklifts): Illustrates these data graphica

    		•
  • Q : Equilibrium level of aggregate

    Normal 0 false false

    		•
  • Q : In which ratios long-term bond investor

    Which ratios would a potential long-term bond investor is most interested in? Describe. Current & potential lenders of long-term funds, such like banks & bondholders, are interested in debt ratios.  While a business's debt ratios ri

    		•
  • Q : What is Out-of-State Travel blanket

    Out-of-State Travel (OST) blanket: The request by a state agency for Governor’s Office approval of the proposed out-of-state trips to be taken by that agency’s personnel throughout the fiscal year.

    		•
  • Q : Cause-and-effect chain Normal 0 false

    Normal 0 false false

    		•
  • Q : Define Governors Budget Governor's

    Governor's Budget: The publication the Governor represents to the Legislature, by January 10 every year. It has recommendations and approximates for the state’s financial operations for the budget year. This also displays the real revenues and e

    		•
  • Q : How does the market find out the fair

    How does the market find out the fair value of a bond?The fair value of bond is the present value of the bond's coupon interest payments plus the present value of the face value payment at maturity, discounted at the market's required rate of re

    		•
  • Q : Cyclically adjusted budget Normal 0

    Normal 0 false false