Browsing by Author "Djolov, George Georgiev"
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- ItemThe Herfindahl-Hirschman Index as an official statistic of business concentration : challenges and solutions(Stellenbosch : Stellenbosch University, 2012-12) Djolov, George Georgiev; Smit, Eon van der Merwe; Stellenbosch University. Faculty of Economic and Management Sciences. Graduate School of Business.ENGLISH ABSTRACT: This dissertation examines the measurement of business concentration by the Herfindahl- Hirschman Index (HHI). In the course of the examination, a modification to this method of measurement of business concentration is proposed, in terms of which the accuracy of the conventional depiction of the HHI can be enhanced by a formulation involving the Gini index. Computational advantages in the use of this new method are identified, which reveal the Ginibased HHI to be an effective substitute for its regular counterpart. It is found that theoretically and in practice, the proposed new method has strengths that favour its usage. The practical advantages of employing this method are considered with a view to encouraging the measurement of business concentration using the Gini-based index of the HHI.