Classification of competitiveness types using copula

Mereuta, Cezar and Albu, Lucian liviu and Ciuiu, Daniel (2010): Classification of competitiveness types using copula. Published in: Non-Linear Modeling in Economics. Beyond Standard Economics. Editor: Lucian Liviu Albu, Ed. Expert, Bucharest. (March 2011): pp. 147-165.

Abstract

In this paper we classify competitive markets using a new form of normalized Herfindahl index and the degree of dominance of the leader. For this purpose we use the notion of copula, which connects two or more random variables with given marginals. The parameters of the two marginals (which are supposed to be normal) are estimated by the moments' method, and the parameter of the copula is computed using the value of Kendall.

• Item Type: MPRA Paper
• Language: English
• Keywords: Copula, competitiveness, classification, Herfindahl index, dominance degree of the leader.
• Subjects: C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C13 - Estimation: General; ; C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C51 - Model Construction and Estimation

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