A New Industry Concentration Index

Nejat Anbarci () and Brett Katzman

Economic Papers, 2015, vol. 34, issue 4, 222-228

Abstract: type="main" xml:id="ecpa12122-abs-0001">

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 la rgest firms, but to decrease and thus to indicate an increase in competition when a merger is purely among the (n − m) smallest firms.

Date: 2015
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