Is Market Dominance still the Order of the Day? Traditional Approach Measuring Market Structure, Versus New.

Earlier approaches which have tried to assess market structure in banking industry have relied upon using assets or deposits or even loans to calculate market shares, however using profit-after-tax as the relevant variable dramatically changes the results. This paper aims to use this approach and produce conclusive evidence about Pakistan's banking industries market structure, which so far has been classified as monopolistically competitive and is thought to be moving towards healthy levels of competition. Further analysis is built upon a simple model of market power in the market for loans. [ABSTRACT FROM AUTHOR]