The Herfindahl Index Calculator is a specialized tool designed to measure market concentration and assess competitive dynamics within industries. This essential business analytics tool helps economists, market analysts, and business professionals evaluate market structure by calculating the sum of squared market shares of firms within an industry. Users can easily input market share data to obtain accurate Herfindahl-Hirschman Index (HHI) values, which are crucial for antitrust analysis and regulatory compliance. The calculator provides valuable insights for merger assessments, competitive analysis, and strategic decision-making in various markets. Whether you’re a regulatory professional, business analyst, or researcher, this tool streamlines the process of measuring market concentration and understanding competitive landscapes. Start using our Herfindahl Index Calculator today to gain precise insights into market structure and competition levels.
The Herfindahl-Hirschman Index (HHI) adds the squares of each firm’s market-share percentage to show how concentrated a market is; scores above 2,500 flag high concentration under U.S. antitrust guidelines (DOJ, 2023).
