seller concentration

seller concentration

see MARKET CONCENTRATION.

seller concentration

an element of MARKET STRUCTURE that denotes the number and size distribution of suppliers in a given MARKET. Market theory predicts that MARKET PERFORMANCE will differ according to whether there are many suppliers in the market, each accounting for only a small fraction to total supply (PERFECT COMPETITION), or only a few suppliers, each accounting for a substantial proportion of total supply (OLIGOPOLY) or a single supplier (MONOPOLY). See also CONCENTRATION MEASURES, MARKET CONCENTRATION, BUYER CONCENTRATION.
References in periodicals archive ?
Seller concentration determines political power of an industry's special interest groups by influencing their ability to mobilize members and by lowering incentives to free ride.
Scale economies and seller concentration also convey political power.
Analogously, a large literature finds that, across many industries, seller concentration is positively correlated with prices and seller profits.
Also, the theoretical and empirical literature on competition has moved beyond seller concentration, price-cost margins, and other ideas central to current enforcement.
Instead of relying on market structure measures such as seller concentration to proxy the intensity of competition, we used the extent of fluctuations in domestic market share among leading firms over an 18-year period.
The industry-specific characteristics which have traditionally been hypothesized to influence price-cost margins [Scherer and Ross, 1990] include the extent of seller concentration, measured as the four-firm concentration ratio, and the small business presence, measured as the number of firms in the industry with between 10 and 50 employees [Prince and Thurik, 1993].
In the pooled regression results shown in Table 1, the price-cost margins of both large and small firms are similarly influenced by the extent of seller concentration, the small business presence, capacity utilization, growth, the export share of the industry, and competing imports.
In terms of the conjectural variation elasticity, one can reasonably expect seller concentration to be positively correlated with [Theta] as well as AELS.
Since the regression equation controls for the seller concentration effect, it is possible that the negative sign reflects the desire of firms to sacrifice per unit profit in order to achieve volume efficiency (Martin, 1993).
and (2) new developments in the study of the relationship between seller concentration and market price, principally reflected in Leonard Weiss', Concentration and Price.
In addition, following Fitch's observance in mid-2001 of the slower than anticipated payout of the NPF XI transaction, Fitch became concerned with the appropriateness of the current seller concentration limits.
Using 24 "major metropolitan market[s]" as their sample, for 7 post-war years, the authors regress price on transport cost, economies of scale, wage cost, capacity utilization, and seller concentration (concentration ratios, Herfindahl-Hirschman indexes, numbers of sellers, all based on capacities, and with some adjustment for "imports" from adjacent regions).