ECON-UA 2 Lecture Notes - Lecture 19: United States Census Bureau, Normal-Form Game, Scatter Plot
21 Nov 2016
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Clicker question: if there are n equal-sized firms in an industry, the hhi is: Used by the federal trade commission and the department of justice. Increase the hhi by less than 100. Or keep the hhi under 1,500 ( unconcentrated market) Government opposition: any merger that raises the hhi by more than 200 to a value of 2,500 or greater. Caveats on the measures of market concentration (us census bureau) May distort the true degree of market concentration. U. s. production only (does not include foreign production. The census data is nationwide, while the relevant markets are sometimes local. Clicker question: if we collect industry data on the 4-firm concentration ratio (cr4) and the hhi and we plot them in a scatter diagram, we shall get a positive linear relationship as shown below: true, false * Natural oligopolies: minimum efficient scale is a large fraction of the market. Established oligopolists: likely to have favorable reputations.
