"Since 1982, the U.S. Department of Justice, the Federal Trade Commission, and state attorneys general have used the Herfindahl-Hirschman Index (HHI) to measure market concentration for purposes of antitrust enforcement. The HHI of a market is calculated by summing the squares of the percentage market shares held by the respective firms. For example, an industry consisting of two firms with market shares of 70% and 30% has an HHI of 70²+30², or 5800.
"According to the DOJ-FTC 2010 Horizontal Merger Guidelines, the agencies will regard a market in which the post-merger HHI is below 1500 as 'unconcentrated,' between 1500 and 2500 as 'moderately concentrated,' and above 2500 as 'highly concentrated.'"
See the tool HERE.
The prioritization process also can help companies go in the right direction in the way that usually only illustrates how management and financial problems in the circumstances.
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