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Assessing market dominance |
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| Authors: | Arie Melnik Oz Shy Rune Stenbacka |
| Institution: | aDepartment of Economics, University of Haifa, Haifa 31905, Israel;dWZB-Social Science Research Center Berlin, Germany;eSwedish School of Economics, P.O. Box 479, 00101 Helsinki, Finland;fGöteborg University, Sweden;c,d,aICER, Italy;e,fDepartment of Economics, University of Michigan, 611 Tappan Street, Ann Arbor, MI 48109-1220, USA |
| 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. |
| Keywords: | Firm’ s dominance Dominant position Measure of dominance Concentration measures Abuse of dominant position |
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