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Mergers and the Herfindahl-Hirschman Index (HHI) definitions

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이 집합의 용어 (15)

  • Merger
    Combination of two separate firms into a single entity, often impacting market structure and competition.
  • Horizontal Merger
    Union of firms within the same industry, typically raising concerns about reduced competition and increased market power.
  • Vertical Merger
    Integration of firms at different production stages, usually less scrutinized by regulators due to limited impact on competition.
  • Market Power
    Ability of a firm to influence prices and control market outcomes, often heightened by mergers.
  • Competition
    Rivalry among firms in a market, which can be diminished by certain types of mergers.
  • Herfindahl-Hirschman Index
    Numerical measure of market concentration, calculated by summing squared market shares of all firms in an industry.
  • Market Share
    Portion of total industry revenue attributed to a single firm, used in calculating concentration indices.
  • Concentration
    Degree to which market power is held by a few firms, assessed using indices like HHI.
  • Monopoly
    Market structure where a single firm controls all industry revenue, resulting in maximum market share.
  • Regulatory Response
    Government action based on market concentration levels, determining whether mergers are permitted or scrutinized.
  • Low Concentration
    Market condition indicated by HHI below 1500, suggesting minimal risk to competition from mergers.
  • Moderate Concentration
    Market state reflected by HHI between 1500 and 2500, prompting cautious government review of mergers.
  • High Concentration
    Situation where HHI exceeds 2500, leading to heightened regulatory scrutiny of proposed mergers.
  • Industry
    Group of firms producing similar products or services, often the focus of merger analysis.
  • Threshold
    Specific HHI value used by government to determine the level of concern and action regarding mergers.