Aggregate concentration has recently been recognized as an important source of competitive constraints. The concerns raised by it are, however, particularly difficult to deal with, largely because they do not lend themselves to straightforward solutions. This chapter examines the use of abuse of...

The Herfindahl-Hirschman index (HHI) appears to be the most widely used index of market or industrial concentration. It is a summary measure that indicates the degree of competition, market power, and efficiency within a market or an industry. The HHI is also used by government agencies when...

The degree of the banking sector concentration is a structural variable and refers to the number of banks in the system and the degree of their market power. The importance of measuring concentration in the banking sector stems from the causal relationship between the market structure and the...