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A Note on the Bias in Herfindahl-Type Measures Based on Count Data

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  • Bronwyn H. Hall

Abstract

[fre] Un indice d'Herfindhal comptant par définition un nombre de parts relatives s'avère biaisé à la baisse dès que ce nombre est trop faible du fait des propriétés statistiques du nombre de données comptées et de l'inégalité de Jensen. Cette note propose une correction simple de ce biais, ainsi qu'une illustration qui applique cette méthode dans le contexte de données de brevets et de citations de brevets. [eng] A Herfindahl index of constructed from shares based on count data where the number of counts is small will generally be biased downward because of the statistical properties of count data and Jensen's inequality. This note suggests a simple correction for the bias and illustrates its applicability when using measures based on patent data and patent citation data.

Suggested Citation

  • Bronwyn H. Hall, 2005. "A Note on the Bias in Herfindahl-Type Measures Based on Count Data," Revue d'Économie Industrielle, Programme National Persée, vol. 110(1), pages 149-156.
    • Handle: RePEc:prs:recind:rei_0154-3229_2005_num_110_1_3076
    DOI: 10.3406/rei.2005.3076
    Note: DOI:10.3406/rei.2005.3076
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