A probabilistic approach of Hirschman-Herfindahl Index (HHI) to determine possibility of market power acquisition
This paper presents a probabilistic approach of the application of the Hirschman-Herfindahl Index (HHI) for the estimation of market concentration. A region of uncertainty in terms of the HHI is defined, the probability of any market participant acquiring market power is estimated, and a trend for t...
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creator | Kanagala, A. Sahni, M. Sharma, S. Gou, B. Yu, J. |
description | This paper presents a probabilistic approach of the application of the Hirschman-Herfindahl Index (HHI) for the estimation of market concentration. A region of uncertainty in terms of the HHI is defined, the probability of any market participant acquiring market power is estimated, and a trend for this probability with the changes of HHI is identified by the analytical approach. The analysis is supported by simulation results of different markets with various numbers of participants. The probability of any market participant acquiring market power is seen to rise exponentially until it saturates at the upper limit. |
doi_str_mv | 10.1109/PSCE.2004.1397699 |
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A region of uncertainty in terms of the HHI is defined, the probability of any market participant acquiring market power is estimated, and a trend for this probability with the changes of HHI is identified by the analytical approach. The analysis is supported by simulation results of different markets with various numbers of participants. 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The probability of any market participant acquiring market power is seen to rise exponentially until it saturates at the upper limit.</description><subject>Analytical models</subject><subject>Costs</subject><subject>ISO</subject><subject>Monitoring</subject><subject>Monopoly</subject><subject>Power generation</subject><subject>Power industry</subject><subject>Resource management</subject><subject>Testing</subject><subject>Uncertainty</subject><isbn>078038718X</isbn><isbn>9780780387188</isbn><fulltext>true</fulltext><rsrctype>conference_proceeding</rsrctype><creationdate>2004</creationdate><recordtype>conference_proceeding</recordtype><sourceid>6IE</sourceid><sourceid>RIE</sourceid><recordid>eNotUFFLwzAYDIigzv0A8SWP-tCaNGnTPI4y7WCgoIJvI02-0k-3tksiun9vh7uX4w7uOI6QG85Szpl-eHmtlmnGmEy50KrQ-oxcMVUyUSpeflyQeQifbILQecmyS7Jf0NEPjWlwiyGipWactLEdHVpaow-225k-qcG32DvTbemqd_BL7-p6dU_jQB1E8DvsgY5DCHjsiYdjeGf8F8TJ_QFPjd1_Y8CIQ39NzluzDTA_8Yy8Py7fqjpZPz-tqsU6Qa7ymMimtRKcAi2lnQR3EowpHM8LqZhlosna0lqTO6Yss0oL4BlnrS1UAeCsmJHb_14EgM3ocRp02JxeEX8pY1rq</recordid><startdate>2004</startdate><enddate>2004</enddate><creator>Kanagala, A.</creator><creator>Sahni, M.</creator><creator>Sharma, S.</creator><creator>Gou, B.</creator><creator>Yu, J.</creator><general>IEEE</general><scope>6IE</scope><scope>6IL</scope><scope>CBEJK</scope><scope>RIE</scope><scope>RIL</scope></search><sort><creationdate>2004</creationdate><title>A probabilistic approach of Hirschman-Herfindahl Index (HHI) to determine possibility of market power acquisition</title><author>Kanagala, A. ; Sahni, M. ; Sharma, S. ; Gou, B. ; Yu, J.</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-i175t-4bfc4ed7e944c4bf1d4eaa6d156470c03b2f8cca5d07c0c793e1210fc676eedc3</frbrgroupid><rsrctype>conference_proceedings</rsrctype><prefilter>conference_proceedings</prefilter><language>eng</language><creationdate>2004</creationdate><topic>Analytical models</topic><topic>Costs</topic><topic>ISO</topic><topic>Monitoring</topic><topic>Monopoly</topic><topic>Power generation</topic><topic>Power industry</topic><topic>Resource management</topic><topic>Testing</topic><topic>Uncertainty</topic><toplevel>online_resources</toplevel><creatorcontrib>Kanagala, A.</creatorcontrib><creatorcontrib>Sahni, M.</creatorcontrib><creatorcontrib>Sharma, S.</creatorcontrib><creatorcontrib>Gou, B.</creatorcontrib><creatorcontrib>Yu, J.</creatorcontrib><collection>IEEE Electronic Library (IEL) Conference Proceedings</collection><collection>IEEE Proceedings Order Plan All Online (POP All Online) 1998-present by volume</collection><collection>IEEE Xplore All Conference Proceedings</collection><collection>IEEE Electronic Library (IEL)</collection><collection>IEEE Proceedings Order Plans (POP All) 1998-Present</collection></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext_linktorsrc</fulltext></delivery><addata><au>Kanagala, A.</au><au>Sahni, M.</au><au>Sharma, S.</au><au>Gou, B.</au><au>Yu, J.</au><format>book</format><genre>proceeding</genre><ristype>CONF</ristype><atitle>A probabilistic approach of Hirschman-Herfindahl Index (HHI) to determine possibility of market power acquisition</atitle><btitle>IEEE PES Power Systems Conference and Exposition, 2004</btitle><stitle>PSCE</stitle><date>2004</date><risdate>2004</risdate><spage>1277</spage><epage>1282 vol.3</epage><pages>1277-1282 vol.3</pages><isbn>078038718X</isbn><isbn>9780780387188</isbn><abstract>This paper presents a probabilistic approach of the application of the Hirschman-Herfindahl Index (HHI) for the estimation of market concentration. A region of uncertainty in terms of the HHI is defined, the probability of any market participant acquiring market power is estimated, and a trend for this probability with the changes of HHI is identified by the analytical approach. The analysis is supported by simulation results of different markets with various numbers of participants. The probability of any market participant acquiring market power is seen to rise exponentially until it saturates at the upper limit.</abstract><pub>IEEE</pub><doi>10.1109/PSCE.2004.1397699</doi></addata></record> |
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subjects | Analytical models Costs ISO Monitoring Monopoly Power generation Power industry Resource management Testing Uncertainty |
title | A probabilistic approach of Hirschman-Herfindahl Index (HHI) to determine possibility of market power acquisition |
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