6. Connected Corporate Networks II: A Novel Approach to the Competition Measure

Over the last few years, the anti-trust risk of shared ownership is having a moment. Analysts and policymakers, both progressive and conservative, are sending a signal regarding the increasing concentration of shares in the hands of large institutional investors, combined with greater involvement in corporate governance. This study seeks to evaluate the existing measures of market concentration and propose a novel approach to the competition measure [smoothly] combined with the connected corporate network procedure. The proposed index is applied on several business sectors of the Greek economy. The last section of this study discusses the efficiency of the new index compared with traditional measures such as the Herfindahl–Hirschman index and the m-firm concentration ratio.