is calculated as the sum of squares of the financial market shares of all Compustat firms in the Fama-French (1997) 48-industry classification.
Comparing an industry's selling intensity with the degree to which it is dominated by a few firms, as measured by the Herfindahl index
, does not indicate a systematic relationship between the two measures across industries, suggesting that the story of customer capital is distinct from the story of market power (Figure 3).
They use a standard index of market concentration, the Herfindahl Index
, to identify geographic regions where nonselective schools face comparatively less competition.
The Herfindahl index
takes on smaller values when the distribution of activity is equal across all industries.
Besides, for robustness of results, ownership concentration is also measured by the annual Herfindahl index
for each firm-year observation, corresponding to the sum of squares of stocks held by each of the five main shareholders as done in previous works (MAURY; PAJUSTE, 2005; CRISOSTOMO; LOPEZ-ITURRIAGA; VALLELADO, 2014).
Based on empirical evidence on the manufacturing sector, Bailie and Boyle (1971) pointed out that the four-firm concentration index is strongly correlated with all the variants of the Herfindahl Index
Also, the report maps the competition in each region using the Herfindahl index
To test the impact of diversification on reinsurance usage, we use the Herfindahl index
to measure business and geographic concentration.
The most commonly used index of market concentration is the Herfindahl index
(see for example Fungacova and Poghosyan 2011; Beck et al.
In the second workshop (in Philippines as APEC host economy of SOM, on August, 2015), experts in economic regulation will share their knowledge and experiences in the use of methods like Cost-Benefit Analysis; and Methodologies like Compensating variation, Herfindahl index
, among others.
gives a weight depending on the exposure to the counterparties.
frame and speaker diversity and an adaptation of the Herfindahl index
, which measures market concentration), as well as various types of criticism and news images.