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Concentration in Product Markets

Author

Listed:
  • C. Lanier Benkard
  • Ali Yurukoglu
  • Anthony Lee Zhang

Abstract

This paper measures concentration in narrowly defined product markets for a broad range of consumer goods and services in the U.S. from 1994 to 2019. We document two main empirical facts. First, concentration levels are high. 44.4% of the markets in our sample are “highly concentrated” as defined by U.S. regulators. Second, market concentration has been decreasing since 1994. The median HHI falls from 2362 to 2045. These findings stand in stark contrast to the prior literature, which uses market definitions that are aggregated to a level that is typically too broad to accurately reflect competition in consumer markets.

Suggested Citation

  • C. Lanier Benkard & Ali Yurukoglu & Anthony Lee Zhang, 2021. "Concentration in Product Markets," NBER Working Papers 28745, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:28745
    Note: IO
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    Other versions of this item:

    • Benkard, C. Lanier & Yurukoglu, Ali & Zhang, Anthony Lee, 2021. "Concentration in Product Markets," Working Papers 308, The University of Chicago Booth School of Business, George J. Stigler Center for the Study of the Economy and the State.

    Citations

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    Cited by:

    1. Miller, Nathan H., 2025. "Industrial organization and The Rise of Market Power," International Journal of Industrial Organization, Elsevier, vol. 98(C).
    2. Javier D. Donna & Pedro Pereira, 2024. "Structural Presumptions for Non-horizontal Mergers in the 2023 Merger Guidelines: A Primer and a Path Forward," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 65(1), pages 303-345, August.
    3. Tomás R. Martinez & Thiago Trafane Oliveira Santos, 2024. "Disentangling Brazilian TFP: the role of misallocation in recent economic cycles," Working Papers Series 609, Central Bank of Brazil, Research Department.
    4. Konrad Biercewicz & Urszula Chrąchol-Barczyk & Jarosław Duda & Małgorzata Wiścicka-Fernando, 2022. "Modern Methods of Sustainable Behaviour Analysis—The Case of Purchasing FMCG," Sustainability, MDPI, vol. 14(20), pages 1-24, October.
    5. Johannes S. Kunz & Carol Propper & Kevin E. Staub & Rainer Winkelmann, 2024. "Assessing the quality of public services: For‐profits, chains, and concentration in the hospital market," Health Economics, John Wiley & Sons, Ltd., vol. 33(9), pages 2162-2181, September.
    6. Calligaris, Sara & Chaves, Miguel & Criscuolo, Chiara & De Lyon, Joshua & Greppi, Andrea & Pallanch, Oliviero, 2024. "Industry concentration in Europe: Trends and methodological insights," LSE Research Online Documents on Economics 126768, London School of Economics and Political Science, LSE Library.
    7. Seula Kim & Michael Navarrete, 2025. "Geospatial Heterogeneity in Inflation: A Market Concentration Story," FRB Atlanta Working Paper 2025-15, Federal Reserve Bank of Atlanta.
    8. Michele Fioretti & Junnan He & Jorge Tamayo, 2024. "Prices and Concentration: A U-Shape? Theory and Evidence from Renewables," Working Papers hal-04631762, HAL.
    9. Jan De Loecker & Jan Eeckhout & Simon Mongey, 2021. "Quantifying Market Power and Business Dynamism in the Macroeconomy," Working Papers 1251, Barcelona School of Economics.
    10. repec:wbk:wbrwps:10269 is not listed on IDEAS
    11. Mary Amiti & Sebastian Heise, 2025. "U.S. Market Concentration and Import Competition," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 92(2), pages 737-771.
    12. Rabah Arezki & Ana Margarida Fernandes & Federico Merchán & Ha Nguyen & Tristan Reed, 2021. "Natural Resource Dependence and Monopolized Imports," CESifo Working Paper Series 9254, CESifo.

    More about this item

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L4 - Industrial Organization - - Antitrust Issues and Policies

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