Assessing market dominance

Arie Melnik, Oz Shy, Rune Stenbacka

Research output: Contribution to journalArticlepeer-review

Abstract

We propose a new measure to assess market dominance. Contrary to concentration measures such as the Herfindahl-Hirschman index that characterizes the concentration of an industry, our dominance measure suggests an approach that classifies when an individual firm has a dominant position. In our measure, the criterion for dominance is relaxed as the intensity of existing competition increases or as entry barriers are lowered. We apply the dominance measure to a number of well-known competition cases.

Original languageEnglish
Pages (from-to)63-72
Number of pages10
JournalJournal of Economic Behavior and Organization
Volume68
Issue number1
DOIs
StatePublished - Oct 2008

Keywords

  • Abuse of dominant position
  • Concentration measures
  • Dominant position
  • Firm's dominance
  • Measure of dominance

ASJC Scopus subject areas

  • Economics and Econometrics
  • Organizational Behavior and Human Resource Management

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