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 ?
The cases against Google, Facebook, and Amazon demonstrate the dangers posed by market power and dominance.
The review will look into "whether and how market-leading online platforms have achieved market power and are engaging in practices that have reduced competition, stifled innovation, or otherwise harmed consumers", the Justice Department said in a statement, Daily Sabah reported.
The Federal Energy Regulatory Commission (FERC) today finalized two rules intended to ease the regulatory burden for electric power sellers with market-based rate authority, while ensuring the Commission continues to prevent the potential exercise of market power.
In its review, the PCC looked at how the combined stake of the merged firm may exercise market power by increasing prices of medicines where they used to compete in, and the possibility of how similar products present in both firms might become less active or be pulled out from the market once both entities merged.
While rising corporate market power has had a fairly limited negative economic impact so far, if left unchecked, it could take a bigger toll on growth and people's income.
The investigation will include a series of hearings held by the Subcommittee on Antitrust, Commercial and Administrative Law on the rise of market power online, as well as requests for information that are relevant to the investigation.
While the rising corporate market power has had a fairly limited negative economic impact so far, it could take a bigger toll on growth and people's income if left unchecked.
Hull Street Energy is a private equity firm that acquires, optimizes and grows middle market power businesses through the application of industry-leading risk management, efficiency enhancements and contract structuring.
To prevent gaming and abuse of market power by generation company-trading participants, the Energy Regulatory Commission (ERC) has engaged an American firm-consultant so they can toughen up surveillance and monitoring at the Wholesale Electricity Spot Market (WESM).
It examines global prospects and policies; the evolution of corporate market power and its macroeconomic effects, whether market power has increased, and what the implications are; the price of capital goods, its drivers, and its impact on real investment rates; and the link between bilateral trade tariffs and trade imbalances.
(2) In economic terms, the Turkish perception means that Turkey wishes to use its geographical location to exercise market power in the European natural gas market (transit market power).
The URC takeover removes its only competitor, erodes the benefits of competition for the sugarcane planters, and leaves market power at the hands of a single provider in an area,' Balisacan said.