A Measure of the Effect of Diversification, through External Growth, on Industrial Concentration: Some Illustrations Economics 33 Antitrust Bulletin 1988

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33 Antitrust Bull. 161 (1988)
A Measure of the Effect of Diversification, through External Growth, on Industrial Concentration: Some Illustrations

handle is hein.journals/antibull33 and id is 169 raw text is: The Antitrust Bulletin/Spring 1988

A measure of the effect of
diversification, through external
growth, on industrial concentration:
some illustrations
BY ANDRtAS ANTONIOU*
I. Introduction
The problem of measuring industrial concentration has kept
economists and statisticians busy for several decades. Many
economists are convinced that such an index will be able to give
an accurate picture of the structure of the industry in question,
and thus enable them to say something about the conduct and/or
the performance of that sector. My purpose in this study is not to
discuss the merit of this belief.' Rather, it is to propose a new
* Assistant Professor, Department of Economics, Laurentian Uni-
versity.
AUTHOR'S NOTE: An earlier and different version of this paper was
presented at the annual meeting of the Canadian Economic Association
in Montrtal, May, 1985.
I See among other recent contributions, R.S. Clarke, et al., The
Profitability-Concentration Relation: Market Power on Efficiency,

@ 1988 by Federal Legal Publications, Inc.