Search results
Results from the WOW.Com Content Network
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 ...
Dominant logic relates to the main means a company uses to make a profit. In essence, it is an interpretation of how a company has succeeded. It describes the cultural norms and beliefs that the company espouses. Dominant logic can be useful when applied to corporate diversification. In this sense, dominant logic is a common way of thinking ...
Social dominance theory (SDT) is a social psychological theory of intergroup relations that examines the caste-like features [1] of group-based social hierarchies, and how these hierarchies remain stable and perpetuate themselves. [2]
In modern contract theory, the “theory of the firm” is often identified with the “property rights approach” that was developed by Sanford J. Grossman, Oliver D. Hart, and John H. Moore. [ 45 ] [ 46 ] The property rights approach to the theory of the firm is also known as the “Grossman–Hart–Moore theory”.
Prices below P* are believed to be relatively inelastic as competitive firms are likely to mimic the change in prices, meaning less gains are experienced by the firm. [ 30 ] An oligopoly may engage in collusion , either tacit or overt to exercise market power and manipulate prices to control demand and revenue for a collection of firms.
First, it is necessary to determine whether a company is dominant, or whether it behaves “to an appreciable extent independently of its competitors, customers, and ultimately its consumers.” Establishing dominance is a two-stage test. The first thing to consider is market definition, which is one of the crucial factors of the test. [79]
Adding a decoy may affect consumer preference. In marketing, the decoy effect (or attraction effect or asymmetric dominance effect) is the phenomenon whereby consumers will tend to have a specific change in preference between two options when also presented with a third option that is asymmetrically dominated. [1]
In theory and in practice, market concentration is closely associated with market competitiveness, and therefore is important to various antitrust agencies when considering proposed mergers and other regulatory issues. [3] Market concentration is important in determining firm market power in setting prices and quantities.