« Call for papers: Joint AFEE-ASE session at 2015 ASSA meetings | Main | Mark D. White comments on Adam Grant's New York Times op-ed on tenure »

02/06/2014

Op-Ed: Deb Figart and Ellen Mutari on casino concentration in Atlantic City, NJ

Atl cityDeborah M. Figart (past ASE president) and Ellen Mutari (current ASE vice president), economists at The Richard Stockton College of New Jersey, recently published an op-ed in Press of Atlantic City addressing the issue of increasing concentration in Atlantic City's casino industry.

There is a number. There is a measure to help determine whether the casino industry in Atlantic City is too concentrated. It's called the Herfindahl-Hirschman Index, or HHI. It is a commonly accepted measure of market concentration. The HHI reveals that the Atlantic City casino industry is already highly concentrated.

Speculation that Caesars Entertainment Corporation may have its eye on purchasing Revel Casino-Hotel has drawn the attention of political leaders such as state Sen. Jim Whelan, D-Atlantic. Caesars already owns and operates four of Atlantic City's now 11 casinos and was instrumental in the decision to shutter the Atlantic Club, one of its competitors. So what would be the economic impact if this already dominant player merged Revel into its holdings?

You can read the entire article here.

Comments

Feed You can follow this conversation by subscribing to the comment feed for this post.

The comments to this entry are closed.