Simplifying the Measure of Concentration from Common Ownership: A Note

Antonio Estache, Maxime Katté and Christophe Kieffer

No 2022-19, Working Papers ECARES from ULB -- Universite Libre de Bruxelles

Abstract: The note presents a simpler alternative to the Modified Herfindahl-Hirschman Index to measure the risks of market concentration in the presence of common owners such as institutional investors owning shares in multiple firms expected to compete in the same market. This new measure, the Amplified Herfindahl-Hirschman Index, delivers the same insights as the MHHI but is less data intensive and less sensitive to outliers. It thus offers a more “user friendly” and more precise alternative to competition and regulatory agencies as a decision trigger for more detailed investigations of market power risks associated with the growing presence of common ownership.

Keywords: Antitrust; Common Ownership; Institutional Investors; Market Power; Modified Herfindahl-Hirschman Index (search for similar items in EconPapers)
Pages: 14 p.
Date: 2022-06
New Economics Papers: this item is included in nep-bec, nep-com and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published by:

Downloads: (external link)
https://dipot.ulb.ac.be/dspace/bitstream/2013/3442 ... FFER-simplifying.pdf Œuvre complète ou partie de l'œuvre (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eca:wpaper:2013/344277

Ordering information: This working paper can be ordered from
http://hdl.handle.ne ... lb.ac.be:2013/344277

Access Statistics for this paper

More papers in Working Papers ECARES from ULB -- Universite Libre de Bruxelles Contact information at EDIRC.
Bibliographic data for series maintained by Benoit Pauwels ().