Measuring the structure of a market can be achieved through various methods. The primary determinant for market structure is market concentration.

Market concentration is based on the total production of a market and the number of businesses involved, this is also known as total capacity or total reserves. With market concentration, there is a small number of businesses within the market that hold a significant share of it, leading to higher market concentration.

Regulators and agencies calculate market concentration when evaluating mergers and other regulatory matters, as it influences a business's ability to set their prices and output levels.

Several barriers and obstacles impact the concentration of a particular market, some of which include the high start-up costs, high economies of scale, brand loyalty, industry size and age, product differentiation, current advertising levels, and human capital needs.

There are several methods of measuring market structure, including concentration ratio, Herfindahl-Hirschman Index (HHI), and Lorenz Curve.

Concentration ratio is the earliest and most popular measurement and determines the value ratios of businesses based on various sizes such as output, assets, revenue, and capacity.

HHI is calculated based on the ratios of businesses shares and ranges from 0 to 1, with a maximum value being reached when there is only one business in the market.

Lorenz Curve measures the distribution of income and wealth among businesses in the market and creates a cumulative graph.

Understanding market structure is essential for conducting business and making strategic decisions.

The line connecting the two squares of the unit square is called the "absolute equilibrium line." When the control shares of the market are equal, the Lorenz curve coincides with this line. As we move away from the diagonal, the disparity increases, indicating a greater tendency toward industry-wide monopolization.

The purpose of the Lorenz curve is to show how far the distribution has deviated from this equality line. Traditional methods for measuring market structure are faced with obstacles, given the disruptions in the competition system. Oligopolistic structures, monopolistic competition, and monopolistic organizations are prevalent in today's economies.

The concept of "concentration" is essential in explaining how businesses operate with respect to their production, sales, price, and employment practices. Concentration occurs when a small number of businesses dominate a sector and are the top enterprises according to various measures.

High concentration enables a small number of companies to control entire economies or sectors of an industry, resulting in a move away from a competitive market, leading to greater monopolistic tendencies, higher costs and prices, reduced production volumes, and poor economic performance.

The distribution of resources is getting worse, leading to a decline in welfare levels. Oligopolistic and monopolistic institutions have negative effects on societies by promoting unfair competition and failing to protect consumers.

Despite numerous studies conducted by industrialized nations on these topics, studies on market structures and outcomes in our country are insufficient, necessitating suitable measuring.

The framework for market structure measurement faces several challenges, including selecting the appropriate measure, determining which firms should be indexed in a given market, and the suitability of the criteria's distribution of business sizes. It is also important to consider factors other than market structure that affect behavior and market performance.

Relying only on market share measurement can be deceptive or inconclusive. Therefore, developing a new metric to assess the existing market structure is essential to provide evidence or measure performance, forecast and identify future trends.