Abstract

RUIZ-PAREDES, Carlos Fabián; RUIZ-PAREDES, Luis Eduardo  and  MORALES-PAREDES, Jorge. TOPOLOGICAL JUSTIFICATION OF THE HERFINDAHL-HIRSCHMAN INDEX AS A NORM-GENERATED INDEX. Semest. Econ. [online]. 2017, vol.20, n.45, pp.133-161. ISSN 0120-6346.  https://doi.org/10.22395/seec.v20n45a5.

This paper proposes an alternative way of justifying the Herfindahl-Hirschman index; this is based on indices generated by norms on finite dimension vector spaces. Based on R^n standards, proposals to measure industrial concentration can be constructed. The Herfindahl- Hirschman index and the concentration ratio index (RC1) will be proven to be the limit of the indexes generated by the Euclidean norm and the maximum standard, respectively, this when considering a hypothetical scenario of infinite actors in the industry.

JEL CLASSIFICATION: C02, L11

Keywords : Concentration index; industrial concentration; Herfindahl-Hirschman index; Colombia.

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