A New Industry Concentration Index
Economics, Finance, & Quantitative Analysis
We propose and analyse a new concentration index alternative to the Herfindahl-Hirschman Index (HHI). This new index emphasises the concept of competitive balance. It is designed to preserve the convexity property of the HHI when a merger involves one of the m largest firms, but to decrease and thus to indicate an increase in competition when a merger is purely among the (n − m) smallest firms.
Digital Object Identifier (DOI)
Anbarci, Nejat and Katzman, Brett E., "A New Industry Concentration Index" (2015). Faculty Publications. 3809.