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Quantitative Finance · Begrippenlijst

Wat is Market concentration, Herfindahl–Hirschman index?

Ook bekend als: market concentration · Herfindahl--Hirschman index

Definition 30.2 The Desk and the Firm · Hoofdstuk 30 — Competition and the Future

Market concentration is the degree to which a business’s volume or revenue is held by a few firms, measured by concentration ratios (the kk largest firms’ combined share, CRk\mathrm{CR}_k) or by the Herfindahl–Hirschman index, the sum of the squared market shares in percent,

HHI=∑i=1n(100 si)2,\mathrm{HHI}=\sum_{i=1}^n(100\,s_i)^2,

from near 0 for many small firms to 10 000 for one (Book 1’s Herfindahl index of venues, on a 0 to 10 000 scale).

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