Market Power, Economic Efficiency And The Lerner Index

Download or read book Market Power, Economic Efficiency And The Lerner Index written by Rolf Fare and published by World Scientific. This book was released on 2024-03-14 with total page 149 pages. Available in PDF, EPUB and Kindle. Book excerpt: The book uses distance functions, a generalization of the more familiar production function, as the theoretical and empirical tools to construct Lerner indexes of market power in both the input and output markets. The use of distance functions enables us to explicitly account for the effects of firm inefficiency and price markups in the evaluation of market power. The book focusses on the theory and provides a menu of applications to construct measures of firm efficiency and market power in the financial and public sectors.