Call protection and Herfindahl index: Difference between pages
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A measure of market concentration. | |||
Higher Herfindahl index numbers mean a greater degree of market concentration. | |||
The index ranges from 0 to 10,000. | |||
== See also == | |||
* [[ | It is calculated as the sum of the squared market shares of individual entities in the market, expressed as percentages and then ignoring the percentage signs. | ||
* [[ | |||
* [[ | For example, if one entity monopolised the entire market, its market share would be 100%. | ||
* [[ | |||
The index would be calculated as: | |||
100 x 100 = 10,000 | |||
==See also== | |||
*[[Concentration]] | |||
*[[Entity]] | |||
*[[Index]] | |||
*[[Monopoly]] | |||
Revision as of 08:27, 5 May 2016
A measure of market concentration.
Higher Herfindahl index numbers mean a greater degree of market concentration.
The index ranges from 0 to 10,000.
It is calculated as the sum of the squared market shares of individual entities in the market, expressed as percentages and then ignoring the percentage signs.
For example, if one entity monopolised the entire market, its market share would be 100%.
The index would be calculated as:
100 x 100 = 10,000
