The term ‘market structure’ relates to the number and size distribution of firms in a market. Markets dominated by a few large firms are said to be ‘concentrated’. This article offers a brief review of the modern literature that sets out to explain differences in concentration levels across different industries.
KeywordsAdvertising Barriers to entry Endogenous sunk costs First mover advantages Herfindahl index Integer effects k-firm concentration ratio Learning Market structure Mergers Minimum efficient scale Monopolistic competition Monopoly Multi-stage games Network effects Oligopoly Perfect competition Rate of return Research and development Scale economies
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