Using only the formula and the available data, the Herfindahl-Hirschman index for that industry is 50*2²=200, suggesting a highly competitive market. However, the Herfindahl-Hirschman index does ...
Example of HHI Risk Imagine a hypothetical industry of fifty companies, each with about 2% market share nationwide. Using only the formula and the available data, the Herfindahl-Hirschman index ...