H
   
   Herfindahl Index
   















 

H

Herfindahl Index

A measure of industry concentration. The value of the index, H, is the sum of the squares of the market shares of all firms in an industry:
  

Industry concentration can be an indication of the effectiveness with which competitors can engage in anti-competitive activity or, less-conspiratorially, the extent to which competitors might be insulated from the predatory pricing characteristic of many commodity industries.

Glossary * H