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Concentration ratios – is the current wave of mergers good for the economy?

Tom White

26th April 2015

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Most students and teachers keep coming back to this issue. Is it best to see industries dominated by a handful of large firms? These oligopolistic market structures exhibit high concentration ratios. Or should we seek to resist any trend in this direction, and instead encourage market structures with low concentration ratios, made up of more smaller competing firms? These questions will never go away.

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Tom White

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