Programme

P.30 -- Poster, NCTP-43

Date: Tuesday, 31 July 2018

Time: 08:30 - 10:00

An entropic approach to determine the concentration ratio of players in market: An application to worldwide smartphone market

Chu Thuy Anh, Nguyen Tri Lan

Institute of Physics,Vietnam Academy of Science and Technology, 18 Hoang Quoc Viet, Cau Giay, Viet Nam

Since 1982, the Herfindahl – Hirschman Index (also known as Herfindahl–Index, HHI, or sometimes HHI – score) has been used by the U.S. Department of Justice and the Federal Trade Commission to determine market concentration for purposes of antitrust enforcement. According to economists and lawyers working in the field of market analysis and antitrust, the Herfindahl – Hirschman Index allows to identify the size of firms in relation to the industry and an indicator of the amount of competition among them. Essentially, the Herfindahl – Hirschman Index is equivalent to the Simpson Diversity Index, which is a diversity index used in ecology; the inverse participation ratio (IPR) in physics; the effective number of parties index in politics; and even the Inventive concentration of fuel cell patents. In this work, the Herfindahl – Hirschman Index is reformulated in the term of entropic concept that supports a statistically mechanical consideration for several criteria used in economics and judicial proceedings of antitrust. Furthermore, within provided framework many physically equivalent quantities of a given market are developed and analyzed.

Presenter: Chu Thuy Anh