market concentration

Few firms dominating

Market concentration is the degree to which a small number of firms dominate an industry or market.

High concentration means few companies control most sales—an oligopoly or near-monopoly.

Low concentration means many competitors sharing the market.

Regulators track market concentration to assess competition: The merger would increase market concentration in the airline industry.

Economists measure it using indices like the Herfindahl-Hirschman Index.

Opposites
market structure

market concentrationperfect competition

Frictionless market ideal

competitive market · free competition · open market

market power distribution

market concentrationlevel playing field

Equal competitive conditions

competitive intensity

market concentrationfree competition

Unrestricted commercial rivalry

open competition · price competition

Family

market, concentration

Familiarity
Top 500,000
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