New Antitrust Merger Guidelines Shake Up Market Concentration Measurement.
The new Antitrust Merger Guidelines focus on measuring market concentration using the Herfindahl-Hirschman Index (HHI). The Guidelines introduce changes in how the Department of Justice assesses concentration in mergers. However, the reliance on the HHI as a predictor of market performance is questioned. While the HHI considers a lot of information, there is no strong evidence that it accurately predicts market performance better than other concentration measures.