A Buyer-Based Measure of Seller Concentration
In most markets, buyers differ in their ability or willingness to switch supplier. This note proposes a novel industry concentration measure that takes this heterogeneity into account. The index increases in the share of captive sales, coincides with the Hirschman–Herfindahl Index when none of the b...
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| Format: | Article |
| Language: | English |
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MDPI AG
2022-07-01
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| Series: | Mathematics |
| Subjects: | |
| Online Access: | https://www.mdpi.com/2227-7390/10/14/2474 |
| _version_ | 1797433360202596352 |
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| author | Iwan Bos |
| author_facet | Iwan Bos |
| author_sort | Iwan Bos |
| collection | DOAJ |
| description | In most markets, buyers differ in their ability or willingness to switch supplier. This note proposes a novel industry concentration measure that takes this heterogeneity into account. The index increases in the share of captive sales, coincides with the Hirschman–Herfindahl Index when none of the buyers are captive, and takes the “pure monopoly” value of 1 when all are captive. |
| first_indexed | 2024-03-09T10:15:56Z |
| format | Article |
| id | doaj.art-f3f27309d3d0421d8e706ffca6b8cf07 |
| institution | Directory Open Access Journal |
| issn | 2227-7390 |
| language | English |
| last_indexed | 2024-03-09T10:15:56Z |
| publishDate | 2022-07-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Mathematics |
| spelling | doaj.art-f3f27309d3d0421d8e706ffca6b8cf072023-12-01T22:24:48ZengMDPI AGMathematics2227-73902022-07-011014247410.3390/math10142474A Buyer-Based Measure of Seller ConcentrationIwan Bos0Department of Organisation, Strategy and Entrepreneurship, Maastricht University, 6211 LK Maastricht, The NetherlandsIn most markets, buyers differ in their ability or willingness to switch supplier. This note proposes a novel industry concentration measure that takes this heterogeneity into account. The index increases in the share of captive sales, coincides with the Hirschman–Herfindahl Index when none of the buyers are captive, and takes the “pure monopoly” value of 1 when all are captive.https://www.mdpi.com/2227-7390/10/14/2474captive consumersconcentration ratioHirschman–Herfindahl Indexmarket structureseller concentration |
| spellingShingle | Iwan Bos A Buyer-Based Measure of Seller Concentration Mathematics captive consumers concentration ratio Hirschman–Herfindahl Index market structure seller concentration |
| title | A Buyer-Based Measure of Seller Concentration |
| title_full | A Buyer-Based Measure of Seller Concentration |
| title_fullStr | A Buyer-Based Measure of Seller Concentration |
| title_full_unstemmed | A Buyer-Based Measure of Seller Concentration |
| title_short | A Buyer-Based Measure of Seller Concentration |
| title_sort | buyer based measure of seller concentration |
| topic | captive consumers concentration ratio Hirschman–Herfindahl Index market structure seller concentration |
| url | https://www.mdpi.com/2227-7390/10/14/2474 |
| work_keys_str_mv | AT iwanbos abuyerbasedmeasureofsellerconcentration AT iwanbos buyerbasedmeasureofsellerconcentration |