A New Industry Concentration Index
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 (n − m) smallest firms.
Journal Title
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
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