Herfindahl Index

(noun)

A measure of the size of firms in relation to the industry and an indicator of the amount of competition among them.

Related Terms

Examples of Herfindahl Index in the following topics:

  • Calculating Market Share

    • The Herfindahl index is a measure of the size of firms in relation to the industry and an indicator of the amount of competition among them.
    • Decreases in the Herfindahl index indicate a loss of pricing power and an increase in competition, and vice versa.

  • Market Power

    • Measurement of market power is often accomplished with concentration ratios or the Herfindahl-Hirschman Index (HHI).
    • The Herfindahl-Hirschman Index (HHI) is a measure of the size of firms in relation to the industry, and an indicator of the amount of competition among them.

  • Regulation and Antitrust Policy

    • These agencies then review the proposed merger by defining what the market is, and then determining the market concentration using the Herfindahl-Hirschman Index and each company's market share.

  • Price Indices and the Rate of Change of Prices

    • Most often, the base period for an index is a single year and normalized.
    • The Laspeyres index and the Paasche index are two price indexes that attempt to compensate for this difficulty.
    • Using the example above, the base period index would be 5*10+8*1.5+2*40=142, and the current period index would be 5*12+8*2+2*45 = 166.
    • Again, using the above example, the base period index would be 4*10+6*1.5+2*40=129, and the current period index would be 4*12+6*2+2*45=150.
    • Two common price indices are the Consumer Price Index (CPI) and the Producer Price Index (PPI).

  • Introduction to Index Numbers

    • One such technique is to add different index numbers to a word when it is being used to mean different things.
    • An index number is merely a small number placed just after and slightly lower than the word being indexed.

  • Instructional Scenarios

    • Focuses on a scenario in a language arts class in a suburban American high school (http://epltt.coe.uga.edu/index.php?

  • Group-external and group-internal ties

    • The E-I index can be applied at three levels: the entire population, each group, and each individual.
    • If we re-scale the observed value of the E-I index (.563) to fall into this range, we obtain a re-scaled index value of -.167.
    • The E-I index can also be calculated for each group and for each individual.
    • E-I index output for the Knoke information network - groups and individuals
    • E-I index output for the Knoke information network - whole network

  • Features and Requirements List

    • To create a full-text indexer and search engine with a rich API, for use by programmers in providing search services for large collections of text files.
    • Enough disk space to hold the indexes (approximately 2x original data size)

  • Stages of Cognitive Development

    • Review the four major stages of cognitive development: Piaget's Stages (http://epltt.coe.uga.edu/index.php?

  • An Instructional Case