HHI 1000 or 0.1 industry, companies, percentage

anshultongia

if HHI is more than 1800, it is controled by few companies, if we remove the percentage, does it mean if HHI>0.18, industry is controled by few.

if HHI=0.15, does it mean we have SQRT(1/0.15 )=2 equal size companies?

random_walker47

linping85 Wrote:
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> thanks, if HHI>0.18, does every change of 0.0015,
> government will intervene?
> because HHI=square of market share, you need
> squart.
>
> if your answer is 7 equal size companies, then
> what's the size?


I though govt will interfere with every change of 0.005, since the market is highly concentrated by one or few companies.

YAhmed

thanks, if HHI>0.18, does every change of 0.0015, government will intervene?
because HHI=square of market share, you need squart.

if your answer is 7 equal size companies, then what's the size?

Kapie

why sqrt?

1/HHI = 1/0.15 ~~ 7 companies...

CP