Working Paper: CEPR ID: DP13925
Authors: Yossi Spiegel
Abstract: I show that in a broad range of oligopoly models where firms have (not necessarily identical) constant marginal cost, HHI is an increasing function of the ratio of producers' surplus and consumers' surplus and therefore reflects the division of surplus between firms' owners and consumers.
Keywords: HHI; Producer Surplus; Consumer Surplus; Oligopoly
JEL Codes: D43; L41
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Herfindahl-Hirschman Index (HHI) (L19) | consumers' surplus (CS) (D11) |
| Herfindahl-Hirschman Index (HHI) (L19) | ratio of producers' surplus (PS) to consumers' surplus (CS) (D41) |
| modified Herfindahl-Hirschman Index (MHHI) (C43) | consumers' surplus (CS) (D11) |
| Herfindahl-Hirschman Index (HHI) (L19) | consumers' surplus (CS) in differentiated product models (D11) |