标题: Herfindahl-Hirschman Index [打印本页] 作者: franzino 时间: 2011-7-11 19:46 标题: Herfindahl-Hirschman Index
In order to calculate you take the market share of each firm and square it and add them up all together right? What is the factor that you multiply by? 10,000?作者: lc26mizzou 时间: 2011-7-11 19:46
hey Chuck. it's the sum of the first 50 firms' market share squared.
a monopoly would be one firm having 100% market share: 100^2 = 10,000
any additional firms would generate results lower than 10,000
got it?作者: Daniel1985 时间: 2011-7-11 19:46
just square each company's market share and sum them.
If you imagine there is only one company in a monopoly that company would have 100% of the market share, so 10,000 is the max possible
100 * 100 = 10,000
Typically any industry with a HH index over 1800 is considered non-competitive作者: Bulla564 时间: 2011-7-11 19:46
keelim: your ranges are off. look at page 112 in the textbook.
Have I got a solid grasp on this?作者: ishfaque 时间: 2011-7-11 19:46
Gotcha. Thanks作者: soddy1979 时间: 2011-7-11 19:46
Thanks man. I forgotten where I got the number. But I think I will stick with pg 110.
Edited 1 time(s). Last edit at Friday, June 5, 2009 at 03:00AM by keelim.作者: invic 时间: 2011-7-11 19:46
i was confused by it as well when i read the section. that's why i got lazy and didn't really wanna memorize it precisely. but after this thread, i'm just going to memorize the table.
