Concentration, Price, and Critical Concentration Ratios
The Review of Economics and Statistics
1981
A potentially important parameter that has not yet been convincingly estimated is the critical concentration ratio. This paper attempts to estimate it in three types of market. The estimation of a critical concentration ratio, if one exists, seems of potentially great importance because of its implication for antitrust policy. If a critical concentration ratio were found and if concentration had no effect below that level, it would seem to follow that a horizontal merger in a market where concentration was below the critical level and where the merger could not increase concentration to the critical level could not substantially lessen competition or tend to create monopoly.
- DOI
- 10.2307/1924351
- Volume
- 63 (3)
- Pages
- 346
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