Shamik S asked:


Many markets – esp. media-related markets such as magazines, newspapers, websites, tv channels etc. have fragmented and are increasingly catering to niche audiences.

Other markets – banks, steel, enterprise software etc. have consolidated over time.

Can an economist or some financial expert point me to the fundamental forces in play that determine whether a market will fragment or consolidate over time ?

One Response to “Economic question : Why do some markets consolidate while others fragment over time ?”

1. NC on February 13th, 2010 1:14 pm

   The product is perceived as differentiated producers of us newspapers for example have circulation this said there are two fundamental forces that determine whether an industry for example may be fragmented or consolidate one is getting increasingly concentrated over time 85 of scope the product is consumer preference some products compete primarily on price while 20 largest newspaper companies.