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Competition

Methodologies to measure market competition

 

 December 2020 (to be confirmed)  Paris  

A perceived reduction of the intensity of competition has been used by some to criticise competition authorities and to propose radical changes to competition law systems. The ability to reliably measure, track and compare the competitive intensity of a market is an extremely valuable key metric to competition authorities and other policymakers to inform decision-making. The fact that competition is a complex notion, and therefore not directly observable, has resulted in the development of numerous methods to capture and measure the degree of competition in markets over the years. Such methods, which vary in complexity and reliability, provide indicators often used to measure the intensity of competition. These indicators can provide useful information but present limitations and careful interpretation is generally necessary, in particular when they are taken in isolation.

In December 2020, the OECD plans to address questions such as what are the problems with relying on just one type of empirical measure? How does the purpose for which the empirical measures are to be used influence which ones are likely to be relevant? How do the relevant group of empirical measures differ according to the specificities of the sector or market? How are different types of measures weighed, including when they are not fully consistent with one another?

All related documentation will become available on this page.

» See full list of best practice roundtables on competition

  

 

 

measuring scale 

RELATED BEST PRACTICE ROUNDTABLES

Market concentration (2018)

Market study methodologies for competition authorities (2017)

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The role of market studies as a tool to promote competition (2016)

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SEE ALSO

OECD work on Market Studies and Competition

Market Studies Guide for Competition Authorities (2018)

OECD best practice roundtables on competition

More OECD work on competition

 

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