synonymMarket concentration(Market concentration) generally refers to industry concentration
Concentration Ratio, also known as industryConcentration rateOr Market Concentration Rate, which refers to theRelevant marketsProportion of top N enterprisesmarket share(Output value, output, sales volume, sales volumeNumber of employees、Total assetsThe sum ofmarket structureThe measurement index of concentration degree is used to measure the difference between the number and relative size of enterprisesMarket powerImportant quantitative indicators.
The industry concentration of the Internet is used to reflect the operation of websites, Internet applications or online gamesstatistical indicators。
Industry concentration is determinedmarket structureThe most basic and important factor reflects the degree of competition and monopoly in the market. The frequently used concentration measurement indicators are: industryConcentration rate(CRn Index), Herfindahl Hirschman Index (HHI)Lorentz curve、Gini coefficient, inverse exponent andEntropy indexAmong them, the concentration rate (CRn) and the Hirschmann index (HHI) are often used in the anti-monopoly economic analysis.
There are many specific methods and corresponding indicators to measure industry concentration. Here, absolute concentration (CRn) and Herfindahl Hirschmann index (HHI) are selected as indicators to measure market concentration.
Industry concentration rate (CRn index)
Figure 1 Index Formula
Industry concentration rate refers to theRelevant marketsThe total market share of the top N enterprises in China.For example, CR4 means that the four largest enterprises occupy the relevant market share.Similarly, five enterprise concentration ratios (CR5) and eight enterprise concentration ratios (CR8) can be calculated.However, the disadvantage of the concentration rate is that it does not indicate the total number of enterprises operating and competing in the relevant market of this industry.For example, the share of CR4 with the same high 75% in two industries may be different, because one industry may have only a few enterprises and the other industry may have many enterprises.CRn index is based on the cumulative market share of the largest n enterprises in the industryIndustrial marketIs represented by the ratio of.IndustrialTotal salesIs X, the sales volume of the ith enterprise is Xi, then the market share of the ith enterprise is Si=Xi/X. If CRn is the sum of the market shares of the largest n enterprises in the industry, then it is: (see Figure 1, Formula 1)
It is generally believed that if the industry concentration ratio CR4 or CR8<40, the industry is competitive;If 30 ≤ CR4 or 40 ≤ CR8, the industry is oligopoly.
The calculation of CRn can be subdivided into the following two cases:
(1) Given the market share of the industryCalculation formula: (See Figure 1, Formula 2)
Among them, Si is the market share of the ith enterprise and the total number of enterprises in the industry.
(2) The output value, output, sales volume, sales volumeNumber of employees、Total assetsThe calculation formula is as follows (see Figure 1, Formula 3), where:
CRn: industry concentration of the first few enterprises with the largest scale;
i: Represents the output value, output, sales volume, sales volume, number of employees, total assets, etc. of the ith enterprise;
N: Total number of enterprises in the industry.Generally, n=4 or n=8, at this time, the industry concentration ratio represents the concentration ratio of the top four or eight enterprises with the largest scale in the industry.
According to American economists Bain andNihon TongIndustry and provinceIndustrial concentrationThe division criteria ofIndustrial market structureIt can be roughly divided into oligopoly type (CR8 ≥ 40%) and competitive type (CR8<40%).Among them, oligopoly can be subdivided into extremely high oligopoly (CR8 ≥ 70%) and low concentration oligopoly (40% ≤ CR8<70%);The competitive type is subdivided into the low centralized competitive type (20% ≤ CR8<40%) and the decentralized competitive type (CR8<20%).
Herfindahl Hirschmann index (HHI index)
(1) Index concept
HHI index, namely Herschman Herfindahl Index, refers to the sum of the squares of the market shares of all enterprises in the relevant market, based on the total number and size distribution of enterprises in the industry.This indicator was first proposed by A. Hirschman, and further elaborated by 0 Herfindahl of Columbia University in his doctoral thesis Concentration of Steel Industry in 1950.The Hirschmann exponent has a mathematical absolute sumRelative methodIts advantages make it an ideal market concentration measurement indicator, which can measure the impact of enterprises' market share on market concentration and become a government reviewM&AIs an important administrative standard.
The index is expressed by the formula: (see Figure 1, Formula 4)
The meaning of this index is that it gives each enterprise a market share of SiWeightThis weight is its market share itself.It can be seen that it gives more weight to large enterprises and fully reflects their market share.The higher the index value, the higher the concentration, and vice versa.
(2) The Application of Hirschmann Index in Antitrust Analysis
First, low degreeCentralized market。US and EUM&A GuideIt is agreed that ifM&AWhen the Hirschmann index is less than 1000 in the post market, it belongs toSafe HarborM&A has no anti competitive effect.
Second, moderately concentrated market。The United States believes that the Hirschman index in the market after mergers and acquisitions is between 1000 and 1800, and the Hirschman index after mergers and acquisitions is less than 100 points higher than that before mergers and acquisitions, which generally has no anti competitive effect;However, if the Hirschmann index increases by more than 100 points, it may have anti competitive effects and needs further analysis.The EU believes that the Hirschman index in the market after mergers and acquisitions is between 1000 and 2000, and the Hirschman index after mergers and acquisitions is less than 250 points higher than that before mergers and acquisitions, which generally has no anti competitive effect, with exceptions;If the Hirschmann index increases by 250 points or more after M&A compared with that before M&A, it may have anti competitive effects and needs further analysis;In moderately concentrated markets, the EU has a looser initial threshold than the United States.
Industry concentration
Third, highly concentrated market。The United States believes that when the Hirschman index increases by more than 1800 after mergers and acquisitions, it is a highly concentrated market, and the increase of the Hirschman index after mergers and acquisitions is less than 50 points compared with that before mergers and acquisitions, which generally has no anti competitive effect;If the Hirschmann index after the merger is more than 50 points and less than 100 points higher than that before the merger, it may have anti competitive effects and needs further analysis;If the Hirschmann index after M&A is more than 100 points higher than that before M&A, it generally has anti competitive effect, but it needs to be further analyzed by integrating other factors.The EU believes that the market is highly concentrated only when the Heshman index increases by more than 2000, and the increase of the Heshman index after the merger is less than 150 points compared with that before the merger, which generally has no anti competitive effect, but there are exceptions;However, if the Hirschmann index after M&A is 150 points or more higher than that before M&A, it may have anti competitive effects and needs further analysis;In highly concentrated markets, the EU and the United States have market concentration thresholdsGradational difference。
Fourth, the value of the Hirschmann index in practice。M&AThe Heshman index measured by Zhongshi is usually much higher than the Heshman index standard specified in the Merger and Acquisition Guide of the United States and the European Union, which means that the Heshman index standard specified in the Merger and Acquisition Guide is only for reference and cannot play a decisive role in the anti-monopoly law enforcement decisions of enterprise mergers and acquisitions. The actual law enforcement decisions should take market concentration, market shareMarket entry barriers、unilateral effects , coordination effect, efficiency and other factors, we should also consider whether there are reasons for exemption or exemption.
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The logic of the traditional judgment method is that a certain indicator (sales volume or sales volume) of the first few enterprises accounts forpercentageRepresents an enterpriseIndustrial concentrationThe size of, can indicate its position in the market and the strength of market dominance, is an important symbol of corporate image.This logic is based on traditionmass production The market and industry situation of the era, because the difference between products is not obvious, the sales volume or sales volume of the enterprise can explain theOverall structureHowever, in the development of modern economy, this situation has changed significantly.
First of all, the product classification is increasingly refined, the length and depth of product lines are constantly strengthened, and the differences between products are increasingly large, so the sales volume data cannot accurately judge the industryConcentration。
Secondly, even though the calculation of industry concentration based on sales volume is effective compared with the calculation based on sales volume, its meaning is limited.It is generally believed that if the industry concentrationCR4<30 orCR8<40, the industry is competitive;If 30 ≤ CR4 or 40 ≤ CR8, the industry is oligopoly.Today, with the rapid updating of products, this definition has lost its meaning.In the "long tail" market of the Internet era, the total value of the unlimited niche market is not inferior to the popular products at the height of the sun.Products and services for specific small groups are also competitive, even ifmarket shareIt is very big, but the level of competition in the industry is still high.
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Influencing factors of industry concentration
There are some reasons that can lead to low industry concentration.
In the famous Porter's industrial competition theory, most of the scattered industries described are industries with low market concentration, and the products in these industries generally have one or more of the followingProduct attributesAnd characteristics:
(1)quality guarantee periodShort term: such asCakes and PastriesIndustry and fresh foodDairy industryThe warranty period of 1-5 days makes some ambitiousLocal enterprisesThere is no alternative.Danone Dairy has two production bases in Shanghai and Guangzhou. The company has excellent brand, management, talent and other comprehensive strengthLeading productsFor "inCold storage areaMilk stored for 21 daysYogurt, restricted by product shelf life and refrigeration conditions,scope of businessIt can only shrink in the Yangtze River Delta and the Pearl River Delta, but is difficult to expandNational market。
(2) Storage and transportation costs are too expensive: e.gBarreled waterandIce creamCold drinks industry, the former>5 -10 yuanThe factory price and the freight rate of about 1 yuan/barrel per hundred kilometers limit the regional expansion of most barreled water plants;The latter from refrigerated truckscold storeIn the supermarket refrigerator, the storage and transportation investment is huge, and many local cold drink companies have to draw a tight line and live in a corner.In addition, some products are easy to be damaged, and their volume is too large, so the storage and transportation costs are too high, which is also important for the low market concentrationinfluence factor
(3) The products are difficult to be produced in scaleThat is, the product cannot be copied quickly and cheaply, such as manyHandicrafts, native products, and some industries in ChinaHandmade workshopStage, once there is something that can be mass producedmechanical equipmentThe industry patternPossibleEarth shaking changes.
(4) Restricted by raw material supply: The production base of some industrial products must be built around the location of raw materials, such as mineral water industry. Restricted by mineral water sources, a large number of enterprises are difficult to expand outside the region, which is an important reason for the low market concentration of this industry.
Determined by the comprehensive strength of manufacturers in the industry
(1) The comprehensive strength of manufacturers in the industry is generally strong: (The comprehensive strength defined here includes the overall strength of capital, management, marketing, talent and other core resources.) The market is full of dozens of brands with balanced strength. The competition for market share among brands is very fierce, but none of them is the best.For example, the toothpaste, soap, sanitary napkins and other industries in daily necessities are relatively mature. Most of the leading industries are joint-venture brands. These brands compete with each other, but none can stand out, resulting in low market concentration.In these industries, it is difficult to find largeMarket opportunities。
(2) The comprehensive strength of manufacturers in the industry is generally weak: Some manufacturers in the industry are at a low level of competition, and the market is at a lower level of equilibrium. The manufacturers are unable (or unintentionally) to buildstrong brand , each living in a corner,Don't thinkEnterprising, leading to low market concentration in the industry.For example, the candy industry, the speculation industryMustard tuberIf you dig carefully, similarSegmented industriesThere are still many. After all, China is still in themarket economyThe initial stage of.In such industries, it is relatively easy to tap market opportunities.
fromconsumer demandDetermined by the degree of diversification
Industry concentration is determined by the development stage of the bank
consumer demand It is a fact that people are becoming increasingly diversified, and the era of one thousand people is gone forever.In order to adapt to the diversified consumption demand of personality, consumers are divided intoMarket segmentationIt is increasingly important, and products in some industries pay more attention toSegments。The more market segments, the lower market concentration, for exampleCosmetics industryInFacial cleanser,Body LotionAnd other products.
Many studies show that SMEs aretechnological innovationThe main source of.Many new products (except those with patent monopoly) were born and developed from SMEs.However, the strength of small and medium-sized enterprises also determines that it is difficult to rapidly expand and occupy the market at the initial stage of the development of the new industry. On the contrary, it is very easy to form a competitive situation in which thousands of arrows are launched and thousands of sails are set to compete, thus affecting the market concentration.For example, in 2000Thermal UnderwearDue to the progress of science and technology, the thermal insulation performance of underwear materials has made breakthrough progress. Small and medium-sized enterprises with various backgrounds have started production. Almost overnight, more than 500 kinds of thermal underwear brands emerged in the market. Strong brands are difficult to stand out, and low market concentration is inevitable.
sufferplanned economyHistorical baggage and policy influence
In some industries, if they face the market completely, they may already be high market concentration industries, but due to the existence of local protection, artificial regions are createdCompetitive barrier, thus affecting the market concentration of some industries.For example, there are many local brandsBeer, liquor and cigarette industry.
In reality, the low market concentration of some industries may be caused by the repeated accumulation of one or more of the above factors.The more influential factors, the more difficult it is to improve market concentration;Similarly, enterprises have a strong influence onfactor analysisThe more thorough, the more industry opportunities can be found, so as to improve the enterprise's ownMarket share。
And market efficiency
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Industry Concentration and Corporate Control Market
so-calledCorporate controlMarket refers to the collection of shares or votesdealershipObtain control over the enterprise to achieve takeover and replacementmanagement layerFrom the micro level, throughCorporate control marketTo replace the bad managersExternal threatsstayCorporate governance structurePlays a very important role in.Manne (1965) pointed out in his pioneering paper thatcontrol powerThe existence of the market has greatly weakened the so-called separation of ownership and control.Fama (1980) also pointed out that even if there is only the possibility of takeover, low stock prices will also exert pressure on the management to changeBehaviorAnd loyal to the interests of shareholders.From a macro perspective, the market for corporate control is a national adjustmentindustrial structure, improveIndustry structureRuback (1983) and others have shown that mergers and acquisitions based on market principles are beneficial toResource allocationOptimization of.Industry concentration is to evaluate the control right of the companyMarket efficiencyEffective indicators.Industry concentration is an indicator to measure the concentration degree of an industry's output or market share to the industry's core enterprises. Generally, the top four enterprises in the industry account for the whole industrytotal outputOr the proportion of market share.
The industry concentration of mature industries can reflect the efficiency of the corporate control market.The sign of a mature industry is the industry's excess supply capacityprofit marginThere is a downward trend and fierce competition in the industry. Only those withscale economyEffective enterprises can survive because they use relatively mature technologies,cost controlIt is decisive in enterprise competition, so SMEs often cannot compete with large enterprises. This situation leads to the further concentration of the market and output of the industry to large enterprises, which further improves the industry concentration.
The trend of market share concentration towards large enterprises in the industry will not continue indefinitely. The reason is that, first of all, any enterprise has its boundaries. Expansion beyond a certain scale may lead toDiseconomies of scale;Secondly, for non natural monopoly industries, any country has some kind of anti-monopolylaws and regulationsTo prevent excessive monopolysocial welfareLosses.The third is due to the industrycore technology Caused by the upgrade ofGame rulesThe market determined by cost may become the market determined by technology, and the entry of new enterprises may lead to the reversal of the trend of market distribution.
The reason to prevent excessive monopoly is that most industries in real life do not have the perfect competition advocated by textbooksmarket structureAlthough theoretically, this market structure is the most efficient.In real life, most of the market structures in mature industries are oligopolistic, that is, enterprises around the master monopolize half or more of the market share. In real lifescale economyAndComplete monopolyThis kind of market structure is often not designed by a government. On the contrary, it is exactly the result of market selection and has been verified in different industries, such as the United StatesAutomobile industryGeneral MotorsFordandChrysler, investment bankingMerrill Lynch、Goldman Sachsandmorgan stanley 。And traditionalEconomic TheoryThe difference is that modernIndustrial Organization TheoryProof: ThisOligopolyThe market structure of,Industrial EconomicsMaster ofUniversity of ChicagoOfHarold Demsetz(1973) pointed out that efficient enterprises can occupy a large market share, andIndustrial concentrationThe good performance of excellent enterprises is due to efficiency rather thanMarket monopolyCaused by.
For aOligopoly marketFor countries with structure (the word "universal" means in most industries), how did the market structure change from the existing state to the oligopoly market structure?There are two ways of transformation. One is through theInternal investmentexpandthroughputAt the same time, small enterprises reduce their production capacity through gradual contraction, which is certainly a way to transform into an oligopoly market structure, and this way does exist in real life. However, this way is difficult to become a mainstream way for the following reasons: First, small enterprises may not be willing to quit,Although at a disadvantage in the competition, the sales price is still higher than the production priceVariable costs, or just based on the consideration of solving the employment problem (which may be the main reason why small enterprises are unwilling to quit in China), the contraction of small enterprises may be a long process. On the other hand, it may also be a long process for large enterprises to expand their production capacity and gradually expand their market share through internal investment,Market expansionThe process may also be resisted by small businesses.
The other way is through the market of corporate control. In general, it is through the competition between the superior enterprises and the inferior enterprisesM&AOr the strong merger between advantageous enterprises and advantageous enterprises has not been realized. Although in most cases, advantageous enterprises are also large enterprises in traditional industries, this is not always the case, becausecapital marketThe magic, smallBMsiness Combinations Large enterprises also happen frequently, so here we replace the concept of large enterprises with competitive enterprises.From the international experience, the realization of oligopoly market structure purchase is mainly based on mergers and acquisitions rather than internal expansion or contraction of enterprises, which can be explained by the frequent financial and automotive industry mergers in recent years.
The above facts illustrate the following logic: that is, the oligopolistic market structure of mature industries is the inevitable result of market evolution, and the general formation of a country's oligopolistic market structure is mainly through the corporate control market. Here, in fact, an implicit assumption is made: assuming that the corporate control market is efficient, that is, ifenterprise mergersIf it is profitable (or a Parato optimization for the original situation), the merger will take place.Only in an efficient market of corporate control can the market spontaneously evolve intoOligopolyIn other words, if the market for corporate control is inefficient, then the evolution of the market to the oligopoly market structure is so slow that the improvement of industry concentration in a country will be very slow and its overall level will be significantly different from the international general level.A conclusion derived from this is that the efficiency of the market for corporate control also determines the trend and level of industry concentration. Since the efficiency of the market for corporate control is unobservable and the industry concentration is observable, industry concentration can be used as a measure of corporate controlMarket efficiencyIndicators of.
Considering that the market for corporate control is still essentially the marketization degree andCapital market efficiencyThe efficiency of the capital market has been divided uniformly in the world, so it still imitates the efficiency of the capital marketclassification method The market efficiency of corporate control is divided into three types, namelyStrongly effective, medium strong effective andWeakly efficientThe determination of relevant categories is based on the average industry concentration of mature industries in the countryevaluation criterionThe United States is a country with a high degree of marketization and focuses on playing the role of corporate control market, so it can be considered that the corporate control market in the United States is strong and effective. If the overall level of industry concentration in a mature industry in a country reaches or approaches the level of the United States, it can be considered that the corporate control market in that country is strong and effective.