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A Measure of the Effect of Diversification, through External growth, on Industrial Concentration: Some Illustrations

The problem of measuring industrial concentration has kept economists and statisticians busy for several decades. Many economists are convinced that such an index will be able to give an accurate picture of the structure of the industry in question, and thus enable them to say something about the conduct and/or the performance of that sector. My purpose in this study is not to discuss the merit of this belief. I Rather, it is to propose a new