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Old 10-23-2018, 02:35 PM
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Gareth Keenan Gareth Keenan is offline
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Default Herfindahl Index?

Anyone ever use the Herfindahl index as a measurement of how competitive an industry is? Any other metric?
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Old 10-23-2018, 04:04 PM
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Yes. It can also be used to look at concentration risk.

Don't recall any other metric.
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Old 10-23-2018, 04:29 PM
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Nice try. How's your Polack-says-what Index?
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Old 10-23-2018, 04:41 PM
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Quote:
Originally Posted by LifeIsAPoissonProcess View Post
Nice try. How's your Polack-says-what Index?
RN.

Some people just look at the concentration ratio - what % of the market is owned by the top X firms, usually the top 4-5 firms I think. Obviously, five firms with ~15% each is quite different from one firm with 71% of the market and the next four firms at 1% each. So I think the Herfindahl index is the more common metric.
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Old 10-24-2018, 09:19 AM
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No love for Hirschman?
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Old 10-28-2018, 12:47 PM
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My company uses it to show WC concentration by state.
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