Title

A New Industry Concentration Index

Department

Economics, Finance, & Quantitative Analysis

Document Type

Article

Publication Date

12-2015

Abstract

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 (nm) smallest firms.

Journal

Economic Papers

Journal ISSN

1759-3441

Volume

34

Issue

4

First Page

222

Last Page

228

Digital Object Identifier (DOI)

10.1111/1759-3441.12122