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Midterm

# Economics 2152A/B Study Guide - Midterm Guide: Lorenz Curve, Extended Periodic Table, Wayne Gretzky

Department
Economics
Course Code
ECON 2152A/B
Professor
Chi
Study Guide
Midterm

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SDideal = 0.5/root(G) where G is number of games
R = SDw/SDideal
Smaller value of R means greater competitive balance
W PcT
A 0.750
B 0.600
C 0.500
D 0.500
E 0.400
F 0.250
Frequency of Championships
NHL: Between 2002-2011
- 9 Different winners of 10 cups
NBA: 2 teams won 3 each
The “official” way to compare competitive balance is by using HHI (Herfindahl-Hirschman Index)
HHI = sum (Market share)^2 over the 50 firms.
HHI = sum (Ci/T)^2
NHL
8 teams at 1/10 so lets do
8(1/10)^2 + (2/10)^2 = 0.12 The smaller the HHI the more competitive.
What is the minimum for a 10-year period… 10(1/10)^2 = 0.10
NBA
2 teams winning 3 each so…
2(3/10)^2 + 4(1/10)^2 = 0.22
MAX HHI is 1… (10/10)^2 = 1
NBA = 0.16
MLB = 0.15
SEE NOTEBOOK FOR GRAPH ABOUT
NBA : the worst 10% of teams account for 5% of the wins (10,5)
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