Browse Economics

Market Concentration and Industry Power

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.

What This Branch Covers

AreaUse it for
ConcentrationConcentration in economic and financial contexts refers to the extent to which a market is dominated by a limited number of firms.
Concentration RatioThe 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 RatioThe 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 ConcentrationSeller concentration refers to the number of sellers within a market and their respective market shares.

What to Check

  • Market definition and relevant competitors.
  • Supply, demand, elasticity, margin, or price-setting evidence.
  • Auction, contract, platform, or regulation involved.
  • Information asymmetry, externality, or market-power issue.
  • Valuation, credit, pricing, or policy conclusion affected.

Common Mistakes

  • Using a market-structure label without defining the market.
  • Assuming price increases always mean monopoly power.
  • Ignoring elasticity, substitutes, regulation, and data limits.
  • Mixing consumer behavior concepts with securities-market execution concepts.

Market-competition content is educational and does not provide antitrust, legal, pricing, or investment advice.

In this section

Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.

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.

Revised on Sunday, June 21, 2026