Economic Concentration

Economic concentration refers to the degree to which a small number of companies dominate a particular market or industry. When market share is concentrated, these few companies hold significant power over prices, supply, and competitiveness, which can reduce choices for consumers and potentially lead to higher prices or less innovation. High economic concentration often suggests less competition, whereas low concentration indicates a more competitive environment with many players. Regulators monitor economic concentration to ensure markets remain fair and efficient, preventing monopolies or oligopolies that could harm consumer interests and overall economic health.