The ranking of industries by the four-firm concentration ratio usually, but not always, reveals the same pattern as ranking by HHI.When a discrepancy is found it is usually due to the following:
A) The four-firm concentration indices contain data on only the largest four-firms, while the HHI are based on data for all firms in the industry.
B) The HHI is based on squared market shares, while the four-firm concentration ratio is not.
C) The four-firm concentration indices contain data on only the largest four-firms, while the HHI are based on data for all firms in the industry and the HHI is based on squared market shares, while the four-firm concentration ratio is not.
D) The two indices are designed to measure two different attributes of markets.
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