Concentration
Concentration in economic and financial contexts refers to the extent to which a market is dominated by a limited number of firms.
Competition terms for concentration, concentration ratios, seller concentration, and N-firm concentration.
Market Concentration and Industry Power covers supply, demand, competition, market power, pricing behavior, auctions, information problems, regulation, and market-failure concepts used in finance.
Use these pages when a term changes pricing power, revenue assumptions, cost pass-through, market structure, auction outcomes, consumer behavior, or regulatory exposure. It sits inside Competition, Market Power, and Industry Structure, so readers can move up when the broader economics context matters.
This landing page points readers toward Concentration, Concentration Ratio, N-Firm Concentration Ratio, and Seller Concentration. Choose the narrower page when the term changes the evidence source, calculation, institution, market convention, risk exposure, or decision being made.
| Area | Use it for |
|---|---|
| Concentration | Concentration in economic and financial contexts refers to the extent to which a market is dominated by a limited number of firms. |
| Concentration Ratio | The concentration ratio measures the proportion of sales provided by the largest firms in an industry, often highlighting the degree of market power held by those firms. |
| N-Firm Concentration Ratio | The N-Firm Concentration Ratio is the proportion of total market output produced by the N largest firms in an industry, used to measure the degree of monopolization. |
| Seller Concentration | Seller concentration refers to the number of sellers within a market and their respective market shares. |
Market-competition content is educational and does not provide antitrust, legal, pricing, or investment advice.
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Concentration in economic and financial contexts refers to the extent to which a market is dominated by a limited number of firms.
The concentration ratio measures the proportion of sales provided by the largest firms in an industry, often highlighting the degree of market power held by those firms.
The N-Firm Concentration Ratio is the proportion of total market output produced by the N largest firms in an industry, used to measure the degree of monopolization.
Seller concentration refers to the number of sellers within a market and their respective market shares.