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A Decomposition of the Herfindahl Index of Concentration

de Gioia, Giacomo (2017): A Decomposition of the Herfindahl Index of Concentration.

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Abstract

The Herfindahl index is one of the most known indices used to measure the concentration of a variable distributed over a certain number of units, and tipically to measure the degree of concentration of business in a market. Its worth is the sensitivity both to the dimensional variability of these units and to their numerical consistency. In the this note a decomposition of the H-index into these two terms is offered.

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