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Aggregate Concentration in Corporate America: The Case of the Fortune 500

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Author Info
Edward Nissan
Jennifer Caveny (The University of Southern Mississippi)
Abstract

This article provides a look at business concentration for sales and assets for the period 1967 to 2002 based on Theil’s entropy, a measure adopted by several authors in earlier publications. For contrast, three other well-known measures of concentration, the Hirschman-Herfindahl (HHI) index and the 4-firm and 8-firm concentration ratios, CR4 and CR8, were utilized. Data used were sales and assets of the largest 500 companies provided by Fortune magazine. In addition to detailed results on concentration, the paper found that the inclusion of service firms with the industrial firms in the list of 500 in 1994 somewhat changed the levels and trends in concentration.

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File URL: http://www2.selu.edu/orgs/ijae/Journal%202/IJAE%20MARCH%202005%20NISSAN%20Concentration%2003%2005%202005%20FINAL2.pdf
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Publisher Info
Article provided by Department of General Business, Southeastern Louisiana University in its journal The International Journal of Applied Economics.

Volume (Year): 2 (2005)
Issue (Month): 1 (March)
Pages: 132-152
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:ija:ancoec:v:2:y:2005:i:1:p:132-152

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Web page: http://www.selu.edu/Academics/Business/GenBus/
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Related research
Keywords: Theil’s entropy; HHI; concentration ratios; Fortune 500;

Find related papers by JEL classification:
L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
L40 - Industrial Organization - - Antitrust Issues and Policies - - - General

References listed on IDEAS
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  1. Jacquemin, Alex P & Kumps, Anne-Marie, 1971. "Changes in the Size Structure of the Largest European Firms: An Entropy Measure," Journal of Industrial Economics, Blackwell Publishing, vol. 20(1), pages 59-70, November. [Downloadable!] (restricted)
  2. Massoud M. Saghafi & Mohsen Attaran, 1990. "Is This the Beginning of the End in the Competitive Trend?," Eastern Economic Journal, Eastern Economic Association, vol. 16(2), pages 125-132, Apr-Jun. [Downloadable!]
  3. Cowell, Frank A., 1980. "Generalized entropy and the measurement of distributional change," European Economic Review, Elsevier, vol. 13(1), pages 147-159, January. [Downloadable!] (restricted)
  4. Ravenscraft, David J, 1983. "Structure-Profit Relationships at the Line of Business and Industry Level," The Review of Economics and Statistics, MIT Press, vol. 65(1), pages 22-31, February. [Downloadable!] (restricted)
  5. Mills, Jeffrey A & Zandvakili, Sourushe, 1997. "Statistical Inference via Bootstrapping for Measures of Inequality," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 12(2), pages 133-50, March-Apr. [Downloadable!]
  6. Catherine J. Morrison Paul, 2003. "Cost Economies: A Driving Force for Consolidation and Concentration?," Southern Economic Journal, Southern Economic Association, vol. 70(1), pages 110-127, July.
  7. Patricia Beeson & Fredrick Tannery, 2004. "The Impact of Industrial Restructuring on Earnings Inequality: The Decline of Steel and Earnings in Pittsburgh," Growth and Change, Gatton College of Business and Economics, University of Kentucky, vol. 35(1), pages 21-41. [Downloadable!] (restricted)
  8. Demsetz, Harold, 1973. "Industry Structure, Market Rivalry, and Public Policy," Journal of Law & Economics, University of Chicago Press, vol. 16(1), pages 1-9, April.
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