what is the main advantage of the herfindahl hirschman index hhi 
the primary advantage of the hhi is the simplicity of the calculation and the small amount of data required for the calculation also firms are weighted according to their size which makes the hhi superior to other measures like the concentration ratio the bottom linethe herfindahl hirschman index hhi is used to determine market competitiveness it measures the degree of concentration within a specific market a market with an hhi of less than 1 500 is considered a competitive marketplace an hhi of 1 500 to 2 500 is moderately concentrated and an hhi of 2 500 or greater is highly concentrated 2