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 ?
Linfield have significant market power, if not a dominant position PETER GIRVAN
Providers of last mile broadband access networks have significant market power for a number of reasons.
While there is no universal agreement among economists or policymakers about just how much concentration is necessary before firms begin to enjoy significant market power, the Horizontal Merger Guidelines ("Guidelines") used by the DOJ and FTC suggest that significant market power is unlikely until the HHI is at least 1,000.
Their estimates suggest that most of these firms have significant market power, not only because of market concentration but also because of the firms' market shares, and their advertising and sales efforts.
Historically, the American public has been concerned about banks becoming excessively large and wielding significant market power.
Antitrust concerns arise during the formation of a PO when it possesses significant market power.
The GBCIC is also worried by the introduction of a penalty amounting to 10% of the annual turnover of a company for abuse of significant market power.
EDF has significant market power with a roughly 20% share of UK capacity and some very large, critical nuclear units that could materially influence pricing.
This is great news and a forward-looking step which will facilitate us to provide more innovative and competitive services for our customers, having been regulated as a significant market power (SMP) for so long," he said.
No telecom operator in Bahrain has significant market power (SMP) or dominance in the supply of mass-market broadband services, according to an assessment by the Telecommunications Regulatory Authority (TRA).
All of the analyses devoted to assessing significant market power (SMP) are today carried out on a national, and in some cases sub-national, scale.

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