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What is Market Structure and Concentration Measures about?

This chapter discusses market structure and concentration. It introduces two measures of market concentration - the concentration ratio (CR4) and the Herfindahl-Hirschman Index (HHI). The CR4 measures the percentage of the market held by the top 4 firms, while the HHI sums the squared market shares of all firms. The chapter also discusses the importance of properly defining a relevant market and how market definition can impact measures of concentration and competition assessments. It notes challenges in de

Author

Fawwaz Rey

Language

EN