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in economics what is hhi and this is short for the hirschmann herfendal index which is a measure of how concentrated the power in a market is how close is the market to a monopoly in other words how much power does each firm in the market have to drive up the price because of course in economics we have different models for monopoly versus oligopoly versus monopolistic competition versus perfect competition and if we want to know in the real world what type an industry is weamp;#39;re going to need some way of sort of measuring how competitive each industry is so itamp;#39;s itamp;#39;s a measure of a particular industry and how concentrated that that power there is now what is the specific formula for hhi thatamp;#39;s just you take the market share where the market share is um if itamp;#39;s a hundred percent thatamp;#39;s actually 100 in this formula not one if itamp;#39;s 25 this enters into this formula as 25 not 0.25 so sometimes people will say itamp;#39;s the market sha
