The Herfindahl-Hirschman Index and the Distribution of Social Surplus

27 Pages Posted: 7 Oct 2019

See all articles by Yossi Spiegel

Yossi Spiegel

Tel Aviv University, Coller School of Management; Centre for Economic Policy Research (CEPR); ZEW – Leibniz Centre for European Economic Research

Date Written: August 2019

Abstract

I show that in a broad range of oligopoly models where firms have (not necessarily identical) constant marginal cost, HHI is an increasing function of the ratio of producers' surplus and consumers' surplus and therefore reflects the division of surplus between firms' owners and consumers.

Keywords: Consumer surplus, HHI, oligopoly, producer surplus

JEL Classification: D43, L41

Suggested Citation

Spiegel, Yossi, The Herfindahl-Hirschman Index and the Distribution of Social Surplus (August 2019). CEPR Discussion Paper No. DP13925. Available at SSRN: https://ssrn.com/abstract=3464444

Yossi Spiegel (Contact Author)

Tel Aviv University, Coller School of Management ( email )

Ramat Aviv, Tel Aviv, 69978
Israel
972-3-640-9063 (Phone)
972-3-640-7739 (Fax)

HOME PAGE: http://www.tau.ac.il/~spiegel

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

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