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

by OC255526

This

**preview**shows half of the first page. to view the full**2 pages of the document.**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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