Herfindahl index

Herfindahl index,

Definition of Herfindahl index:

  1. A measure of a companys market concentration and monopoly power in relation to other firms within the same industry. The index is calculated as the sum of the squared values of all firms shares of a given market. Increases in the index typically indicate a decrease in competition and an increase of market power, whereas decreases indicate the opposite.

Meaning of Herfindahl index & Herfindahl index Definition