Critical analysis of concentration theory provides a formal extension to enhance its utility in market studies.
This essay offers a constructive critical analysis of Mozetic's (2026) concentration theory, examines the mathematical architecture underlying the Threshold of Change framework, and proposes a formal extension toward an analytically derived threshold N* = f(ρ, σ). Furthermore, it situates the volatility threshold within the broader literature on imperfect markets, drawing connections to the Herfindahl-Hirschman Index (HHI) and industrial organization theory. The central argument is that Mozetic's framework constitutes a genuine research program with high formalization potential, provided that the heuristic assumption b(N) → 0 is replaced by a derivable functional form.
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Maximiliano Mozetic (2026) studied this question.
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