Herfindahl-Hirschman Index

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Herfindahl-Hirschman Index (HHI) is when you take the market share of each firm in the industry, square each one, and add them.

Definition

According to Principles of Economics by Timothy Taylor (3rd edition),

Herfindahl-Hirschman Index (HHI). Take the market share of each firm in the industry, square each one, and add them.

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