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What Is Herfindahl-Hirschman Index?

By Kristi Waterworth – Updated Apr 16, 2025 at 11:00PM

Key Points

  • HHI helps assess market competitiveness by calculating company market shares.
  • A HHI below 1500 indicates a competitive market, above 2500 suggests concentration.
  • Use HHI to guide investment decisions, especially in merger and acquisition scenarios.
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