Revisiting Kelly's version of the Herfindahl-Hirschman index
by George G. Djolov
International Journal of Computational Economics and Econometrics (IJCEE), Vol. 8, No. 2, 2018

Abstract: This communication looks at Kelly's proposed formulation of the Herfindahl-Hirschman index (HHI), which has received some attention in the economic and management fields as a promising method to improve the measurement of market concentration by supposedly taking the skewness of market shares into account in the course of the index's computation. It is found that this is not the case, and suggestions are made as to how the formulation could be aligned to its intended aim as originally proposed.

Online publication date: Mon, 09-Apr-2018

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