| Summary: | <p>In this paper, we describe the trend of market concentration, the formation of strategic groups in Russian industry, principles of integration of firms in strategic groups, and the reasons for increase of market concentration.</p><p> <strong>Purpose - </strong>to propose<strong> </strong>the methods of measuring industry concentration in terms of coordination. </p><p><strong> Methodology: </strong>methods of system analysis, economic analysis, the methodological approaches of the theory of industrial organization, regression analysis.</p><p><strong>Results: </strong>Authors provide the methods of measuring industry concentration in terms of coordination. Authors established laws of formation of strategic groups (coalitions). The relationship between the concentration rate and business cycle sensitivity of firms in Russian industry was described.<strong></strong></p><p><strong>Practical implications: </strong>The methods of measuring industry concentration is of interest to economists, business strategists, and government agencies.</p><p><strong><strong>DOI: <a href="http://dx.doi.org/10.12731/2218-7405-2013-7-36">http://dx.doi.org/10.12731/2218-7405-2013-7-36</a></strong></strong></p>
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