Markup Differences are Biased Measures of Lerner Index Differences

The Lerner Index, a broadly accepted measure of market power, is positively related to the markup, but nonlinearly. Nonlinearity implies markup differences are systematically biased measures of differences in Lerner Indices. This note provides a calculation of the direction and magnitude of the bias

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Year of publication:	2022
Authors:	Raskovich, Alexander
Publisher:	[S.l.] : SSRN
Subject:	Theorie \| Theory \| Mark-up Pricing \| Mark-up pricing \| Messung \| Measurement \| Systematischer Fehler \| Bias \| Index \| Index number \| Indexberechnung \| Index construction

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Extent:	1 Online-Ressource (4 p)
Type of publication:	Book / Working Paper
Language:	English
Other identifiers:	10.2139/ssrn.4285410 [DOI]
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10014241703