Market Power in Iran's Banking Industry and Identifying Its Main Determinants

effective factors on market power in Iran’s banking system during 2001-2012. For this purpose, after the evaluation of cost efficiency and the degree of market power exercising in banking industry, effective factors on Concentration in Iran’s banking system were investigated. The results of the study show that the market power and the cost inefficiency in Iran’s banking system have been decreased. Also, the results shown that cost efficiency lead to higher concentration which is consistent with Demstez superior efficiency theory. In other hand, Barrier to Entry has positively effect on concentration level of Iran's banking Industry.  The results also Indicated that increasing the number of branches led to less concentration