As concentration in an industry increases, the Herfindahl index falls.

Name: As concentration in an industry increases, the Herfindahl index falls.
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The Herfindahl index actually increases as concentration in an industry increases. It measures the degree of market concentration in an industry based on the market shares of the leading firms. As the leading firms' market shares increase, so does the Herfindahl index.

As Concentration in an Industry Increases, the Herfindahl Index Falls