Economics 2152A/B Study Guide - Midterm Guide: Lorenz Curve, Extended Periodic Table, Wayne Gretzky
10 Feb 2015
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Sdideal = 0. 5/root(g) where g is number of games. Smaller value of r means greater competitive balance. The official way to compare competitive balance is by using hhi (herfindahl-hirschman index) Hhi = sum (market share)^2 over the 50 firms. What is the minimum for a 10-year period 10(1/10)^2 = 0. 10. Nba : the worst 10% of teams account for 5% of the wins (10,5) The second 10 % of the teams account for 6% of the wins (20,11) Top 10% of teams account for 15% of wins (90, 85) Standard deviations, hhi , or lorenz curve with gini. The right of a player to sell his services to the highest bidder. Changing property rights affects who gets paid but not where the resources are employed. Invariance principle allocation of resources does not change when property rights change. Lets say that in edmonton, he can generate 10million$ in extra revenue a year.
