A Buyer-Based Measure of Seller Concentration

I. Bos*

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review


In most markets, buyers differ in their ability or willingness to switch supplier. This note proposes a novel industry concentration measure that takes this heterogeneity into account. The index increases in the share of captive sales, coincides with the Hirschman-Herfindahl Index when none of the buyers are captive, and takes the "pure monopoly" value of 1 when all are captive.
Original languageEnglish
Article number2474
Number of pages6
Issue number14
Publication statusPublished - 1 Jul 2022


  • captive consumers
  • concentration ratio
  • Hirschman-Herfindahl Index
  • market structure
  • seller concentration


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