Using Excel to Illustrate Hannah and Kay’s Concentration Axioms

Most courses in industrial economics/industrial organisation cover the measurement of industry concentration. In a classic paper Hannah and Kay (1977) propose a set of desirable criteria against which any of the numerous concentration measures may be judged. We describe how these criteria can be illustrated for students for several of the most popular measures using an Excel spreadsheet and an exercise sheet developed by the authors and freely available from the HEA Economics Network website.