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Simulation of a Hirschman–Herfindahl index without complete market share information
Author(s) -
Nauenberg Eric,
Alkhamisi Mahdi,
Andrijuk Yuri
Publication year - 2004
Publication title -
health economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.55
H-Index - 109
eISSN - 1099-1050
pISSN - 1057-9230
DOI - 10.1002/hec.814
Subject(s) - herfindahl index , index (typography) , market share , competition (biology) , business , actuarial science , economics , marketing , computer science , ecology , world wide web , biology
This paper utilizes maximum likelihood methods to simulate a Hirschman–Herfindahl index (HHI) for markets in which complete market share information is unavailable or delayed. Many jurisdictions either may be unable to administratively collect data or experience delays in collection that make data regarding turbulent markets of limited use. With the development of this method, regulatory authorities monitoring health‐care competition or health‐care firms can now use market surveys – in which reliable recall is often limited to the largest three or four firms – to produce an on‐the‐spot measure of market concentration. Copyright © 2003 John Wiley & Sons, Ltd.