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

or

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 ?
Every microeconomics textbook explains that a business with market power can increase its profit by restricting output.
The ACCC has today issued guidelines for consultation on the new misuse of market power, concerted practices and authorisation provisions.
A group of groups is calling on the Department of Justice and the Federal Communications Commission to stop Comcast Communications from acquiring Time Warner Cable, and with it, undue market power.
In this research we analyze the unilateral market power on the demand side in the Italian wholesale electricity market.
Antitrust law has traditionally required proof of market power in most cases and has analyzed market power through a market definition/market share lens.
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.
In this article, we review the existing literature on market power in food retailing, and describe an empirical framework necessary to provide a definitive answer to this question, if indeed one exists.
This paper analyses two approaches to measuring market power --the commonly used Lerner index and a range of exploitation measures--.
2) What remains unclear is whether for-profit and non-profit hospitals both react the same way once faced with greater market power.