Citation

Discussion Paper Details

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Title: The Herfindahl-Hirschman Index and the distribution of social surplus

Author(s): Yossi Spiegel

Publication Date: August 2019

Keyword(s): Consumer surplus, HHI, oligopoly and producer surplus

Programme Area(s): Industrial Organization

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.

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Bibliographic Reference

Spiegel, Y. 2019. 'The Herfindahl-Hirschman Index and the distribution of social surplus'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=13925