an advantage of the herfindahl-hirschman index (hhi) over the n-firm concentration ratio as a summary measure of the market structure of an industry is that the hhi is more sensitive to:

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15-11-2022
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an advantage of the herfindahl-hirschman index (hhi) over the n-firm concentration ratio as a summary measure of the market structure of an industry is that the hhi is more sensitive to:

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Harshtsingh Harshtsingh · Answer 1 · 2022-11-20T06:59:37+01:00

The blessings of the Herfindahl index are that it reflects greater firms in the industry and it offers increased weight to the organizations with large market shares.

What is the cause of the usage of Herfindahl-Hirschman Index?

The Herfindahl–Hirschman Index (HHI) is a frequent measure of market awareness of an enterprise - the measurement of corporations in relation to the industry they are in- and is used to determine market competitiveness.

What does a excessive Herfindahl index mean?

Increases in the Herfindahl index usually indicate a minimize in competition and an increase of market power, whereas decreases indicate the opposite. Alternatively, if complete percentages are used, the index degrees from 0 to 10,000 "points". For example, an index of . 25 is the same as 2,500 points.

Learn more about herfindahl-hirschman index here:

an advantage of the herfindahl-hirschman index (hhi) over the n-firm concentration ratio as a summary measure of the market structure of an industry is that the hhi is more sensitive to:

Respuesta :

What is the cause of the usage of Herfindahl-Hirschman Index?

What does a excessive Herfindahl index mean?

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