dominant firm

dominant firm

a firm that accounts for a substantial proportion of the total supply of a particular product. Such a firm not only has a high absolute market share, but also often a (relative) market share which is considerably greater than its nearest rival. In consequence, a dominant firm may be in a position to exercise market (monopoly) power to the detriment of both consumers and rival suppliers. Under UK COMPETITION POLICY,a dominant firm is defined as a firm which supplies 40% or more of a specified GOOD or SERVICE. See COMPETITION POLICY (UK).

dominant firm

a firm that accounts for a significant proportion of the supply of a particular good or service. Such a firm exercises a considerable degree of power in determining the supply terms of the product (see PRICE LEADERSHIP) and may be tempted to further its own interests at the expense of consumers. A monopoly firm is one that controls the entire supply of a particular product (see MONOPOLY).

Under UK COMPETITION POLICY, a dominant firm is defined as a firm that supplies 40% or more of a specified good or service. See OFFICE OF FAIR TRADING, COMPETITION COMMISSION, COMPETITION POLICY (UK), COMPETITION POLICY (EU), MARKET DOMINANCE.

References in periodicals archive ?
The answer, quite obviously, is rule by either a single dominant firm or a small group.
Croatian non-life insurance market is highly concentrated and characterized by the presence of "tight oligopoly" (four firms hold over 60%) and dominant firm existence (market share of the leading company over the respective period of time does not fall below 40%).
For this reason, conduct that would otherwise be acceptable when pursued by a firm that is not considered to be in a dominant position may in fact violate the EC's abuse of dominance provisions if perpetrated by a dominant firm.
Since 1966 this dominant firm supplied raw materials to Zoja, a manufacturer of ethambutol.
Steel's leadership position in this industry, it seems reasonable to characterize competition via a dominant firm model, at least over the first four decades of the 20th century.
This model was first introduced in the UK, when the dominant firm BskyB was forced by OFT's moral suasion to promote a wholesale offer based on retail minus pricing to competitors in alternative platforms (16).
They assert that most often, a dominant firm acquires a smaller firm.
Durant and Alfred Sloan were as different in their approaches to corporate management as two men could be, yet both played pivotal roles in making General Motors the dominant firm in the American automobile industry for many decades.
He argues that a dominant firm is "in a position to use as a bargaining weapon the threat of obtaining supplies elsewhere" (p.
competitors of the dominant firm has changed in a manner corresponding
If jurors are unable to understand the legal-economic requirements of predatory pricing law, then they are largely left with a morality play between a dominant firm, often with superior resources and files full of "smoking gun" documents that Judge Richard Posner calls "compelling evidence of predatory intent to the naive," and a smaller, often younger firm that has been damaged by the dominant firm's behavior.
Gowrisankaran and Holmes (2000) investigate mergers in a dynamic dominant firm model.