Market structure and concentration ratio: evidence of IT companies in Hungary

Judit  Oláh; József  Popp; Domicián  Máté; Yusmar  Ardhi Hidayat

doi:10.23762/FSO_VOL7_NO3_1

Published : 2019-09-30

Vol. 7 No. 3 (2019)

Market structure and concentration ratio: evidence of IT companies in Hungary

Judit Oláh

https://orcid.org/0000-0003-2247-1711

József Popp

https://orcid.org/0000-0003-0848-4591

Domicián Máté

https://orcid.org/0000-0002-4995-7650

Yusmar Ardhi Hidayat

https://orcid.org/0000-0002-1835-6879

DOI: https://doi.org/10.23762/FSO_VOL7_NO3_1

Abstract

The high numbers of Information Technology (IT) companies in Hungary may correlate with their market share. The number of existing companies may create a market structure and high levels of concentration. Therefore the purpose of this research is to analyse the market structure and concentration of IT companies in Hungary. Data used in this research is secondary data, and the tools of analysis used are the Hirschman-Herfindahl Index (HHI) and Concentration Ratio (CR). The results suggest that the type of market structure of IT companies in Hungary can be categorised as an oligopoly with low concentration. It follows that there is no leading company on the IT market. Here the findings indicate that telecommunication providers are deemed to be leaders in the IT industry in Hungary. In the oligopoly market, the strategy of a telecommunication provider would influence other competitors to set the price and differentiate their services. In addition, the government may stimulate the development of IT companies by imposing a differentiated tax.

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Anticorruption commission, ethics commission, ethics management, integral system, municipality, self-government

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Oláh , J. ., Popp , J. ., Máté, D. ., & Ardhi Hidayat , Y. . (2019). Market structure and concentration ratio: evidence of IT companies in Hungary. Forum Scientiae Oeconomia, 7(3), 7–18. https://doi.org/10.23762/FSO_VOL7_NO3_1

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Judit Oláh

olah.judit@econ.unideb.hu
https://orcid.org/0000-0003-2247-1711

Affiliation:

University of Debrecen, Debrecen, Hungary

Bio Statement (e.g., department and rank)

Judit Oláh, PhD, Habil. is an Associate Professor of the University of Debrecen Faculty of Economics and Business Institute of Applied Informatics and Logistics, Hungary. Her research interests include logistics and supply chain management, operations management, transportation and warehouse management. Her research has appeared in several high-ranking national and international journals. She is also a member of the Editorial Advisory Board of Amfiteatru Economic (Web of Science) and guest editor of Sustainability (Web of Science).

József Popp

Popp.Jozsef@szie.gtk.hu
https://orcid.org/0000-0003-0848-4591

Affiliation:

Szent István University, Gödöllő Hungary

Bio Statement (e.g., department and rank)

Prof. Dr. H.c. Popp, József is a Corresponding Member of the Hungarian Academy of Sciences and university professor at Szent István University, Faculty of Economics and Social Sciences. He is a reviewer for several international journals. The scope of his current research interests encompasses international agricultural policy analysis, competitiveness, rural development, supply chain management and bioenergy. He is also an active member and chairman of several academic and professional organisations and regularly conducts professional training seminars for various organisations. He is also a member of the Editorial Advisory Board of Amfiteatru Economic (Web of Science) and guest editor of Sustainability (Web of Science).

Domicián Máté

mate.domician@eng.unideb.hu
https://orcid.org/0000-0002-4995-7650

Bio Statement (e.g., department and rank)

Domicián Máté, PhD, Habil is an Associate Professor at the University of Debrecen, Institute of Industrial Process Management Department of Engineering Management and Entrepreneurship. Scientific interests include analysing the role of human capital, technology and institutions in the case of productivity, employment in a sectoral approach

Yusmar Ardhi Hidayat

yusmar.hidayat@econ.unideb.hu
https://orcid.org/0000-0002-1835-6879

Affiliation:

University of Debrecen, Debrecen Hungary

Bio Statement (e.g., department and rank)

Hidayat, Yusmar Ardhi is a PhD student at the University of Debrecen, Hungary. He is working towards a doctoral degree in Management and Business. His research interests include microeconomics and industry performance.