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The paper analyses the phenomenon of market concentration in the context of   the most popular industrial organization approaches: the structure-   conduct-performance (SCP) approach and the efficiency hypothesis (EH). The   theory of market concentration evaluation is briefly presented, followed by   an analysis of the main concentration indicators and their application in   recent empirical research. The main problem in the practical application of   the Herfindahl-Hirschman index (HHI) - the necessity to incorporate the   market shares of all the enterprises in the market - is further addressed   and the issue of calculating the minimum value of the HHI is analysed from   the theoretical point of view and by modelling hypothetical markets

On the concept of market concentration, the minimum Herfindahl‒Hirschman index, and its practical application