Use our free HHI Calculator to quickly determine the market concentration of an industry. The Herfindahl-Hirschman Index helps assess competitive landscapes, identify potential monopolies, and evaluate merger impacts, crucial for antitrust analysis and economic studies. Simply input the market share percentages of firms.
Formula:
The Herfindahl-Hirschman Index (HHI) is calculated by summing the squares of the market shares of all firms in the industry. Market shares are expressed as whole numbers (e.g., 25 for 25%).
Formula:
HHI = S12 + S22 + S32 + ... + Sn2
Where:
- Si = Market share of firm i (as a percentage, e.g., 20 for 20%)
- n = Total number of firms in the industry