Lerner Index Calculator

Answers the Question

How much market power does a company have?

Calculator for Lerner Index


What Is the Lerner Index?

The Lerner index is a measure of how much market power a firm has.

Lerner index values can vary from 0 to 1. The higher the value, the greater the market power of the firm.

A Lerner index of 0 indicates a market with perfect competition.

A Lerner index of 1 indicates a powerful monopolist.

Why Is it Important?

Formula(s) to Calculate Lerner Index

Common Mistakes

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