Business Pitch Dictionary by pitch.dog
Markets, industries & categories · Specialist

Herfindahl-Hirschman Index

Also called: HHI

ELI5

A number showing how concentrated a market is.

Used in conversation

“The HHI rises materially after the proposed merger.”

Definition

A market-concentration measure calculated by summing the squares of firms' market shares.

Here “Herfindahl-Hirschman Index” means: A market-concentration measure calculated by summing the squares of firms' market shares.

Pitch context

You will see “Herfindahl-Hirschman Index” in strategy decks, market analyses, business plans and planning workshops when the discussion reaches markets, industries & categories.

Why it matters: It helps a reader interpret markets, industries & categories without confusing the measure, decision, role or evidence being discussed.

Sources & evidence · 5

Supporting source families. This entry is an editorial synthesis rather than a quotation from one canonical glossary.