Concentric ring electrodes (CREs) allow improved spatial resolution, reduced crosstalk and interference, and increased bandwidth in the sensing of bioelectrical activity. A wide variety of designs have been used, but their selection is rarely well-founded. The aim of this work is to assess the implications of aspects of CRE design such as the distance between poles, their width and their maximum diameter on aspects such as the signal amplitude (and, therefore, quality), Laplacian estimation error and spatial selectivity (SS). For this purpose, a finite dimensional model of the CRE was used, and its response to the activity of an electric dipole of variable depth was simulated via finite element method modeling. Our results show that increasing the electrode size increases the error to a greater extent than the signal amplitude increases. Pole widths should be as small as possible. The middle ring of the tripolar CRE should be as far away as possible from the central disc. Tripolar CREs typically outperform bipolar CREs of the same outer diameter, significantly reducing the Laplacian estimation error and improving the SS at the cost of a small decrease in signal amplitude. Our results also show that the design of current commercial versions of CREs can be optimized. Furthermore, we propose a methodology that facilitates the selection of an adequate CRE configuration based on the specifications for CRE performance and practical aspects, such as the depth of activity sources to be recorded from and/or the maximum size of electrodes to be used. The monitoring and analysis of bioelectrical signals in a wide range of applications can benefit from the enhanced electrode design and methodology proposed in this work.