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The Lerner Index and Economic Efficiency

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DOI: 10.4236/tel.2014.49101    3,596 Downloads   4,380 Views   Citations


This short paper brings together two literatures: the first is the Lerner Index as a measure of imperfect competition familiar from industrial organization and the second is a measure of performance from the efficiency literature, namely the Nerlovian indicator. We show how these may be related and the resulting decomposition of the Lerner index which results.

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Chambers, R. , Färe, R. and Grosskopf, S. (2014) The Lerner Index and Economic Efficiency. Theoretical Economics Letters, 4, 803-805. doi: 10.4236/tel.2014.49101.

Conflicts of Interest

The authors declare no conflicts of interest.


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