TITLE:
The Lerner Index and Economic Efficiency
AUTHORS:
R. G. Chambers, R. Färe, S. Grosskopf
KEYWORDS:
Lerner Index, Nerlovian Indicator, Profit Efficiency
JOURNAL NAME:
Theoretical Economics Letters,
Vol.4 No.9,
December
5,
2014
ABSTRACT: 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.