Because of the shortcomings of concentration ratios, some economists prefer another measure of competition called

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The Herfindahl-Hirschman Index (HHI) is a commonly used measure of market concentration that takes into account the market share of all firms in an industry, rather than just the top few. It is calculated by squaring the market share of each firm and then adding up those squares. The resulting number can range from close to zero for a highly competitive market to 10,000 for a monopoly. The HHI is considered a more accurate measure of market competition than concentration ratios because it captures the full range of market shares and is sensitive to changes in the market structure.

Because of the Shortcomings of Concentration Ratios, Some Economists Prefer