Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

Tuesday, November 19, 2019

The Herfindahl-Hirschman Index and the Distribution of Social Surplus

Yossi Spiegel, Tel Aviv University discusses The Herfindahl-Hirschman Index and the Distribution of Social Surplus.

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.

https://lawprofessors.typepad.com/antitrustprof_blog/2019/11/the-herfindahl-hirschman-index-and-the-distribution-of-social-surplus-1.html

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