Market domination

For other uses, see Dominance.
For game theory, see Strategic dominance.
Competition law
Basic concepts
Anti-competitive practices
Enforcement authorities and organizations

Market dominance is the control of a economic market by a firm.[1] A dominant firm possesses the power to affect competition[2] and influence market price.[3] A firms' dominance is a measure of the power of a brand, product, service, or firm, relative to competitive offerings, whereby a dominant firm can behave independent of their competitors or consumers,[4] and without concern for resource allocation.[5] Dominant positioning is both a legal concept and an economic concept and the distinction between the two is important when determining whether a firm's market position is dominant.

Abuse of market dominance is an anti-competitive practice, however dominance itself is legal.

  1. ^ Rosenbaum, David Ira (1998). Market Dominance: How Firms Gain, Hold, Or Lose it and the Impact on Economic Performance. Greenwood Publishing Group. ISBN 978-0-275-95604-2.
  2. ^ Shepherd, William (1990). The Economics of Industrial Organisation. NJ: Englewood Cliffs. pp. 273=0.
  3. ^ Doyle, Chris (20–22 November 2002). "Market Definition and Dominance" (PDF).
  4. ^ "What does dominant market position mean? Is it acceptable? | Department of Economics". www.econ.iastate.edu. Retrieved 2022-05-02.
  5. ^ "Market Dominance: How Firms Gain, Hold, or Lose It and the Impact on Economic Performance". eh.net. Retrieved 2022-05-02.