HHI

Business & Finance abbreviation · Economics

HHI
Stands forHerfindahl-Hirschman Index
CategoriesBusiness & Finance

HHI stands for Herfindahl-Hirschman Index, an economics abbreviation.

Measure of market concentration calculated by squaring each firm's market share (in percent) and adding the results, giving a value from near 0 for a fragmented market to 10,000 for a monopoly. Antitrust authorities use it to screen mergers.

Example: The merger would raise the HHI by 400 points to 2,900, likely triggering a closer antitrust review.

Usage notes

The 2023 US merger guidelines treat markets with an HHI above 1,800 as highly concentrated and presume a merger anticompetitive if it raises the HHI by more than 100 points in such a market. The index is named after economists Orris Herfindahl and Albert Hirschman.

More economics abbreviations

  • GFC – Global financial crisis
  • GNH – Gross national happiness
  • GNI – Gross national income
  • GNP – Gross national product
  • GVA – Gross value added
  • HDI – Human Development Index
  • HICP – Harmonised Index of Consumer Prices
  • IS-LM – Investment-saving / liquidity preference-money supply model
  • JOLTS – Job Openings and Labor Turnover Survey
  • LDC – Least developed country
  • LFPR – Labor force participation rate
  • LMIC – Low- and middle-income countries

See all 81 economics abbreviations →