Market Structure Evolution in the U.S. Automobile Industry: A Review of Diversity and Concentration Metrics

I examine the evolution of market structure in the U.S. automobile industry from 1937 to the present, focusing on the application of both traditional and novel diversity and concentration metrics. I use the Herfindahl-Hirschman Index (HHI), Comprehensive Concentration Index (CCI), and newer metrics from fields such as ecology and genetics to uncover insights into the shifting dynamics of market power, firm turnover, and industry stability. The U.S. automobile industry, characterized by consolidation and technological advancement, provides a unique case study for analyzing long-term market evolution. I contribute to the literature by synthesizing a broad range of diversity metrics and offering a comprehensive toolkit for understanding market concentration, richness, and diversity. My findings provide practical tools for marketing scholars, industrial organization researchers, and business practitioners to better understand competitive environments.