E0041: Market Structure & Power Assessment Framework

Quality / Updated / COI

Quality

Reviewed

Updated

02/14/2026

Source

Citations & Trust

COI

none

TL;DR

Market Structure & Power Assessment Framework guides assessing pricing power in different market structures by structuring HHI, market share, and price-cost margin and making the trade-off between pricing power versus regulatory exposure explicit. It keeps assumptions visible for market entry or consolidation analysis and produces a reusable decision record.

Applicability

Use this framework when market entry or consolidation analysis and teams disagree on competitor data, entry barriers, and switching costs. It fits decisions that need cross-functional alignment, numeric justification, and a written rationale. Apply it when reversal costs are high or when data sources are fragmented across systems.

Steps

1. Define scope, horizon, and success metrics (HHI, market share, and price-cost margin); confirm baseline data quality and key assumptions.
2. Collect inputs (competitor data, entry barriers, and switching costs) for each option and normalize units, timing, and ownership so comparisons are consistent.
3. Run scenario and sensitivity checks to see how pricing power versus regulatory exposure shifts; note thresholds that change the recommendation.
4. Select a preferred option, record decision criteria, and list constraints or approvals required before execution.
5. Set monitoring cadence, owners, and triggers for revisit; store the decision log and update when evidence changes.

Template

Template: 1) Background and objective 2) Scope and time horizon 3) Success metrics (HHI, market share, and price-cost margin) 4) Key assumptions (competitor data, entry barriers, and switching costs) 5) Options A/B/C 6) Scenario ranges 7) Trade-off summary (pricing power versus regulatory exposure) 8) Risks and mitigations 9) Decision criteria 10) Recommendation 11) Owner and timeline 12) Review triggers. Include data sources, document confidence levels, and flag variables that change outcomes materially.

Pitfalls

• Using inconsistent units or timing across options makes comparisons misleading and erodes trust in the output.
• Ignoring the pricing power versus regulatory exposure in stakeholder discussions invites later reversals when priorities shift.
• Failing to record assumptions and data sources causes rework when results are challenged or audited.

Case

Case: During market entry or consolidation analysis, teams debated options without a shared frame. The group applied Market Structure & Power Assessment Framework, aligned on HHI, market share, and price-cost margin, and built scenarios around competitor data, entry barriers, and switching costs. Sensitivity checks clarified where the pricing power versus regulatory exposure flipped the ranking. The final decision was documented with owners and review dates, reducing cycle time and avoiding re-litigation in later quarters.

Citations & Trust

• CORE Econ (The Economy)