ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Market Concentration in Indian Manufacturing Sector: Measurement Issues

The article attempts to examine the accuracy of the conventional additive measures of market concentration by using the criteria as suggested by Ginevicius and Cirba. It is found that the GRS Index of Ginevicius and Cirba is a more accurate measure of market concentration. The Herfindahl-Hirschman Index, the most widely used measure of market concentration, deviates far from accuracy. Hence, examining market concentration on the basis of the conventional indices may result in misleading conclusions and hence guide policy formulations in wrong directions.
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