Download Task No 2.2 (2)

Task No 2. “MARKET DELINEATION. MEASURING OF MARKET STRUCTURES”
Homemade work: performed to develop the skills of calculating and interpreting the concentration
indicators for the implementation of a research project. You need to complete the task and upload
the file with the task. The file should contain the formulas that you use for the calculation, all
calculations, the calculation results, the necessary graphs and conclusions. If you use other formulas
to calculate the indicators than those presented in the lectures, you must justify your use of these
modifications - using other formulas and approaches without sufficient justification will result in loss of
points. The file should be structured and understandable for verification.
The table provides data on the capacity of the largest energy companies in Russia. We assume that the
market boundaries are determined by the list of firms listed in the table.
№№
1
2
3
4
5
6
7
8
Energy company
RAO "UES of Russia"
Irkutskenergo
Mosenergo
Krasnoyarskenergo
Lenenergo
Sverdlovenergo
Udmurtenergo
Permenergo
Productive capacity, mln. kW
57. 439
12. 914
1. 136
8. 113
5. 351
1. 827
0.16
0.59
1). Calculate the concentration indices: CR2, CR3 and CR4, HHI, the entropy index and the relative
(average) entropy index, the dispersion of the logarithms of market shares in the market,
considering that the productive capacity of all companies is used at 80%. Build the Lorenz curve
and calculate the Gini index. Use Microsoft Excel features.
2). Calculate the new concentration figures, considering that the productive capacity of the four
largest companies is used at 100%. Build the Lorenz curve and calculate the Gini index. Use
Microsoft Excel features.
3) How will the concentration change in comparison with case 2) if the four largest companies use
the productive capacity by 50%. Build the Lorenz curve and calculate the Gini index. Use Microsoft
Excel features.
4) Explain the differences in the estimates of the concentration indicators for cases 1) -3). Is it
possible to conclude on the degree of monopolization of the market based on the results of
calculations?