Glossary of economics research
Results of search for Lerner index follow:
Lerner index:
A measure of the profitability of a firm that sells a good: (price - marginal
cost) / price.
One estimate, from Domowitz, Hubbard, and Petersen (1988) is that the average
Lerner index for manufacturing firms in their data was .37.
Source: Domowitz, Hubbard, and Petersen (1988), p 57-58
Contexts: IO
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