Title: Axiomatizations of the Entropy Numbers Equivalent Index of Industrial Concentration
Abstract:In recent years a number of axiomatizations of the Theil (1967) index of inequality have appeared in the literature.1 The Theil inequality index has attracted considerable attention because it can be ...In recent years a number of axiomatizations of the Theil (1967) index of inequality have appeared in the literature.1 The Theil inequality index has attracted considerable attention because it can be decomposed quite simply into measures which are interpreted to be indices of intragroup and intergroup inequality for population subgroups.2 The Theil inequality index is based upon the Shannon (1948) entropy index, a measure introduced to quantify the amount of information produced by an information source. Independently, Finkelstein and Friedberg (1967), Theil (1967), and Horowitz and Horowitz (1968) proposed that Shannon's index (or an ordinal transform of Shannon's index) be used as an index of industrial concentration. Theil (1967) observed that the Shannon entropy, interpreted as an index of concentration, satisfies a simple decomposability condition analogous to the one satisfied by the Theil inequality index.Read More
Publication Year: 1988
Publication Date: 1988-01-01
Language: en
Type: book-chapter
Indexed In: ['crossref']
Access and Citation
Cited By Count: 9
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