market power

USAGE SUMMARY

The phrase "market power" is correct and usable in written English.
It is typically used in economics to describe the ability of a firm or entity to influence the price of goods or services in the market. Example: "Companies with significant market power can set prices above competitive levels, leading to higher profits."

✓ Grammatically correct

News & Media

Academia

Science

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

In most cases, search costs appear to be the relatively more powerful determinant of market power.

European Economic Review

But there is market power.

The Economist

One route to market power is size.

The Economist

Trade liberalisation will undermine that market power.

The Economist

They're amassing greater market power.

The Washington Post

Contractual Dualism, Market Power and Informality.

Cornell University

How firms acquire and exploit market power.

Stanford University

(f Market power means sufficient market power to affect competition adversely in the U.S. market.

Cornell University

Unilateral market power raises prices, as predicted.

Journal of Economic Behavior & Organization

Digital players wield outsize market power.

Harvard Business Review

Amazon is always expanding its market power.

The New York Times - Tech

Expert writing Tips

Best practice

When discussing "market power", be specific about its source (e.g., innovation, regulation, or size) and its impact on consumers, competition, and innovation.

Common error

Don't assume "market power" always equates to a monopoly. While significant "market power" can be a step towards monopolization, it doesn't automatically imply a complete lack of competition or illegal practices. Clearly define the extent and nature of the "market power" you are discussing.

Linguistic Context

The phrase "market power" functions as a noun phrase, often serving as the subject or object of a sentence. It describes the degree of influence a company or entity has over the supply and price of goods or services in a market. Ludwig AI confirms its proper usage in varied contexts.

Expression frequency: Very common

Frequent in

News & Media

34%

Academia

33%

Science

33%

Less common in

Formal & Business

0%

Ludwig's WRAP-UP

In summary, "market power" is a well-established phrase referring to the ability of a firm to influence market prices and conditions. As Ludwig AI confirms, it's grammatically sound and widely used across various domains, particularly in news, academia, and science. The phrase is most often employed in discussions around business, economics, and regulatory matters. Understanding its nuances and potential implications is critical, as excessive "market power" can lead to antitrust concerns and potentially harm consumers and competition. Related terms like "pricing power" and "competitive advantage" offer alternative perspectives on this concept.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

pricing power

Focuses specifically on the ability to influence prices.

competitive advantage

Highlights the edge a company has over its rivals.

monopoly power

Emphasizes exclusive control over a market.

bargaining power

Refers to the ability to negotiate favorable terms.

industry dominance

Suggests a leading position within a sector.

market control

Indicates the degree of influence over market dynamics.

commercial strength

Highlights overall business performance and capabilities.

economic influence

Points to broader impact on the economy.

corporate leverage

Emphasizes the strategic use of resources to gain advantage.

strategic advantage

Highlights the use of specific strategies to gain an edge in the market.

FAQs

How is "market power" typically measured?

Economists often measure "market power" using metrics like the Herfindahl-Hirschman Index (HHI), Lerner Index, or by analyzing a firm's ability to profitably raise prices above marginal cost. These methods assess the degree of concentration and influence within a specific market.

What are the potential negative consequences of excessive "market power"?

Excessive "market power" can lead to higher prices, reduced innovation, lower quality products, and decreased consumer choice. It can also create barriers to entry for new competitors, stifling overall economic growth. Policymakers often monitor and regulate industries with high "market power" to prevent these issues.

What is the difference between "market power" and "economic influence"?

"Market power" specifically refers to the ability of a firm to influence prices and output in a particular market. "Economic influence" is a broader term that encompasses the ability to affect economic outcomes through various channels, including government policy, investment decisions, and consumer behavior. A company with "market power" may also wield significant "economic influence", but the two concepts are not identical.

How does "market power" relate to antitrust laws?

Antitrust laws are designed to prevent firms from abusing their "market power" to harm competition. These laws prohibit activities like price-fixing, monopolization, and anti-competitive mergers. Regulatory agencies like the Federal Trade Commission (FTC) and the Department of Justice (DOJ) enforce these laws to promote fair competition and protect consumers.