Feasibility Study for a Concentration Monitoring System

The analysis of corporate concentration aims at estimating the influence of large companies on competition. High sectoral firm concentration represents a market structure feature that is expected to have potentially restrictive effects on competition. Quantitative concentration monitoring to identify markets with restricted competition is an important evidence-based instrument of a forward-looking competition policy. Within the limited framework of a feasibility study, the basic requirements for a concentration monitoring are elaborated on the basis of the literature on competition economics and existing data as well as its potential implementation in Austria. The proven concentration statistics of the German Monopolies Commission serve as a starting point for the elaborations.