market power

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Also found in: Acronyms.

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.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005

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References in periodicals archive ?

The legal amendments envisage the introduction of the concept of "significant market power" and set fines in cases of abuse, according to a project published by the Ministry of Economy, Energy and Tourism.

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In its appeal Europolitan Vodafone had asked for a cancellation of the PTS' decision because under European Union regulations and the Swedish Telecommunications Act a company may only be regarded as having significant market power when its market share exceeds 25%.

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It will deliver opinions on draft measures of NRAs concerning market definitions, the designation of undertakings with significant market power and the imposition of remedies.

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Finnish law requires all telecommunications companies - regardless of whether or not they manage public networks or provide services, and whether or not they have significant market power - to negotiate in order to establish connections.

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In its definition of previously notified markets and its significant market power assessment of August 2009, APEK, the Slovenian regulator, made no distinction between the residential and business market segments.

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Even though Member States are consistent in their definition of relevant markets and designation of operators having a significant market power, the differences concerning the imposed remedies are not always justified by diverging market circumstances.

Reinforcing the commission's power in the communications sector: an issue for the regulatory framework review

They found BT had "significant market power" over access to broadband in the UK, which offers customers the combination of faster connections and "always on" technology.