The Herfindahl‐Hirschman Index and the Distribution of Social Surplus

Yossi Spiegel

Journal of Industrial Economics, 2021, vol. 69, issue 3, 561-594

Abstract: I show that in a broad range of oligopoly models, the Herfindahl‐Hirschman index (HHI) reflects the ratio of producer surplus to consumer surplus and therefore the division of surplus between firms’ owners and consumers.

Date: 2021
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