---
entity_slug: bank_market_structure
evaluator: null
evaluated_at: '2026-02-23T00:42:59.555995'
overall_score: 4.0
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly distinguishes bank market structure from other
    banking concepts by focusing on organizational composition (number, size, market
    shares) and their effects on competition, efficiency, and stability. It avoids
    circularity and captures a distinct analytical concept.
- name: source_grounding
  value: 3.0
  max_value: 5.0
  rationale: While Smith does discuss banking competition and its effects on efficiency
    and stability in Book II, Chapter 2, the modern terminology of "market structure"
    as an analytical framework may be reading contemporary industrial organization
    concepts back into Smith's text. Smith's analysis is more focused on specific
    banking practices than formal market structure theory.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: The "Regulation" domain assignment is highly appropriate since market
    structure directly relates to regulatory concerns about banking competition, concentration,
    and systemic stability. This concept sits naturally within regulatory economics
    and policy frameworks.
- name: vsm_relevance
  value: 4.0
  max_value: 5.0
  rationale: This entity maps well to S3 (internal regulation) as it concerns the
    structural organization and oversight of the banking system, and potentially S4
    (intelligence) as market structure affects how the banking system adapts to environmental
    changes. It has clear VSM relevance for system regulation and adaptation.
- name: explanatory_value
  value: 4.0
  max_value: 5.0
  rationale: The concept provides genuine explanatory power by illuminating the structural
    mechanisms through which banking organization affects competitive dynamics, efficiency
    outcomes, and systemic stability. It goes beyond surface description to explain
    causal relationships between structure and performance.
---

# Evaluation: Bank Market Structure

## definition_precision — 4.0 / 5.0

The definition clearly distinguishes bank market structure from other banking concepts by focusing on organizational composition (number, size, market shares) and their effects on competition, efficiency, and stability. It avoids circularity and captures a distinct analytical concept.

## source_grounding — 3.0 / 5.0

While Smith does discuss banking competition and its effects on efficiency and stability in Book II, Chapter 2, the modern terminology of "market structure" as an analytical framework may be reading contemporary industrial organization concepts back into Smith's text. Smith's analysis is more focused on specific banking practices than formal market structure theory.

## domain_placement — 5.0 / 5.0

The "Regulation" domain assignment is highly appropriate since market structure directly relates to regulatory concerns about banking competition, concentration, and systemic stability. This concept sits naturally within regulatory economics and policy frameworks.

## vsm_relevance — 4.0 / 5.0

This entity maps well to S3 (internal regulation) as it concerns the structural organization and oversight of the banking system, and potentially S4 (intelligence) as market structure affects how the banking system adapts to environmental changes. It has clear VSM relevance for system regulation and adaptation.

## explanatory_value — 4.0 / 5.0

The concept provides genuine explanatory power by illuminating the structural mechanisms through which banking organization affects competitive dynamics, efficiency outcomes, and systemic stability. It goes beyond surface description to explain causal relationships between structure and performance.
