The Economics of e-Commerce and the Internet
Squaring the market share data in an industry that is dominated by one or two large firms yields a much higher HHI value. For example, squaring a 20% market share makes a contribution of .4 to the HHI. But squaring a 30% market share makes a more than doubly large contribution of .9. The higher HHI signals the greater potential ability for ... ................
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