Examples of HHI in a sentence
The HHI is calculated by squaring the market share of each firm competing in the market and then summing the resulting numbers.
The HHI increases both as the number of firms in the market decreases and as the disparity in size between those firms increases.
The HHI takes into account the relative size distribution of the firms in a market.
The Department of Justice (“DOJ”) has informed the Board that a bank merger or acquisition generally would not be challenged (in the absence of other factors indicating anticompetitive effects) unless the post-merger HHI is at least 1800 and the merger increases the HHI by more than 200 points.
For example, for a market consisting of four firms with shares of 30, 30, 20, and 20 percent, the HHI is 2,600 (302 + 302 + 202 + 202 = 2,600).