Market Power, Economic Efficiency and the Lerner Index - Hardcoverby Rolf Fare (Editor), Shawna Grosskopf (Editor), Dimitris Margaritis (Editor) The book uses distance functions, a generalization of the more familiar production function, as the theoretical and empirical tools to construct Lerner indexes of market power in both the input and output markets. The use of distance functions enables us to explicitly account for the effects of firm inefficiency and price markups in the evaluation of market power. The book