Generally, the approach would be add the squares of market share of all firms. For example, if the market contained 500 firms, then the HHI is the sum of 500 market shares squared. The calculations with large numbers of firms are probably best done a spreadsheet (e.g. Excel or Open Office Calc) or using a program, for example Python or R.
The video was very helpful, i have one question. What should be do if the total number of companies in the industry is 500 or more.
Generally, the approach would be add the squares of market share of all firms. For example, if the market contained 500 firms, then the HHI is the sum of 500 market shares squared.
The calculations with large numbers of firms are probably best done a spreadsheet (e.g. Excel or Open Office Calc) or using a program, for example Python or R.
One follow up comment. If size of the industry is very large, it is extremely unlikely there is any significant concentration.
You didn't just show us how to work this index, you taught us how to do and remember this index! Thanks!
Thanks for this very lucid presentation.
This helps me soo much, thank you ! Even if I'm french it's very easy to understand
May i ask where you found the value's for interpreting the index? i need something to reference to.
Thank you sir, had my Anti trust paper, this saved my day!
Thank you for comment.
Thanks for nice explained video. You can watch fast 2x without missing anything.
thanks for the warning. I watched it on 1,5 speed and it was too long for me.
The video can be finished within 2 minutes actually...
trompetistasolitario, we all have different learning styles so it was alright for some of us.
You are only suppose to use 4 firms? Cuz in the one I'm doing there is 6 firms and in another example I saw that person only used 4 again. Help
You can use n number of firm ie any number of firms
@@rohitsinghrajput3857 lol it's been such a long time. I honestly have no idea what I was using this for. Thanks anyways 😅
Very long for such an easy matter
thanks
so
much
my guy
And did u add "N" into your calculation?
"How's your Polak-says-what-index?"
GREAT VIDEO
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The content is good, but too long for only explaining herfindahl index.
Very informative
thank you
thank you but if you were faster would be better but thank you very informative slides.
Good content, but presented like nursery education, could have been shorter time presentation.
What is the targeted audience here? Just wondering. I think maybe High School?
thanks