ANALYSE THE MOST SIGNIFICANT COMPONENTS FOR FORECASTING THE HERFINDAHL-HIRSCHMAN INDEX USING AN ADAPTIVE NEURO-FUZZY TECHNIQUE

Abstract

There is a complex relationship between competition in the product market and investment in business. On one hand, the relationship may be positive, while on the other hand, it might be negative. Various methodologies have been proposed to assess market power for the purpose of developing steps to mitigate or eliminate it. Commonly utilised methods rely on indices such as the Hirschman-Herfindahl Index (HHI). The main goal of this article was to assess how different economic and business variables affect forecasts of the Herfindahl-Hirschman Index (HHI), a very sensitive measure. An ANFIS (adaptive neuro fuzzy inference system) was employed to analyse the data and determine the most crucial factors for predicting HHI. The research indicates that the number of employees has the most significant influence on HHI predictions.