market power

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Market Power

The ability of a company to be able to heavily influence the price charged for its product because no other companies have the same product or a similar product of the same quality. That is, a company with a great deal of market power is essentially able to charge whatever it wants so long as it does not run afoul of antitrust laws. See also: Monopoly, Price maker.

market power


monopoly power

the ability of a firm (or group of firms) to dictate market prices and other terms and conditions of supply. Market power derives essentially from the possession of a dominant market share (see MONOPOLY) or from COLLUSION between the leading suppliers. Where firms possess market power there exists a danger that such power might be abused; for example, the charging of monopolistic prices to the detriment of consumers or selective price cuts to drive out smaller competitors. See COMPETITION POLICY, MARKET STRUCTURE, MARKET CONDUCT, MARKET PERFORMANCE, DOMINANT FIRM.

market power

the ability of a FIRM to administer (within limits) the supply price and terms of sale of its product without immediate competitive encroachment. Market power brings with it the particular danger of exploitation of the consumer by the supplier. The exercise of market power is typically associated with an OLIGOPOLY or a MONOPOLY. See alsoADMINISTERED PRICE, COMPETITION POLICY, SELLER CONCENTRATION, CONDITION OF ENTRY.
References in periodicals archive ?
More fundamentally, the proposition that market power can be inferred from the exclusion of competition rests on one of three possible premises, none of which is sufficient to justify the proposition.
He argues that antitrust should concern itself exclusively with issues of market power and that the characteristics of TBTF financial firms that worry analysts have nothing to do with market power.
20 it was minded to rule that Stansted Airport should not be fully de-regulated because it has a level of market power among low cost and charter carriers that may be substantial.
Bulgarian companies will be monitored for and fined in cases of abuse of "significant market power," according to draft amendments to the Competition Protection Act.
As detailed in the report, the FCC's new market power framework explicitly places the burden on the regulated firm seeking forbearance to provide convincing evidence that its prices are not above "competitive levels.
With such market power, OCC can drive prices for other grades like mixed paper, although this grade has been impacted more by the document destruction business, which has increased its supply.
Both Agriculture Commissioner Frans Fischler and Competition Commissioner Mario Monti have made it clear at EU level that they believe that a simple arithmetical calculation of market share is not relevant in assessing the market power of farmers' co-operatives.
He didn't detail how this should be done, but warned that their market power was now being applied, not just at retail level but also to producers and wholesalers, a point frequently made in farmers' protests over the gap between consumer prices and what they are paid.
I expected more market power effect" and, therefore, higher prices from consolidation in the meatpacking industry.
CDH is written to help health care organizations "respond effectively to the shift in market power, become consumer-centric, and position themselves to become market leaders in the new consumer driven market," NHI said.
The judge found that El Paso colluded to share information with its affiliates, and amassed market concentration that gave El Paso's affiliate that ability to exercise market power in an increasing demand market," Lynch said.
So consolidation and market power clearly lead to more revenue.