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Market Dominance and Anticompetitive Conduct of GPOs

In: Group Purchasing Organizations

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  • S. Prakash Sethi

Abstract

The group purchasing organization (GPO) industry is a classic example of highly concentrated oligopolistic structure, which is characteristic of an industry where the top 3–4 companies control more than 50 percent of the total market. In general, oligopolistic industry structure is symptomatic of mature industries where demand is relatively stable, the rate of innovation is minimal to moderate, and economies of scale—and therefore consolidation— offer the most promising source of increasing revenue and profits.

Suggested Citation

  • S. Prakash Sethi, 2009. "Market Dominance and Anticompetitive Conduct of GPOs," Palgrave Macmillan Books, in: Group Purchasing Organizations, chapter 0, pages 25-33, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-0-230-62172-5_4
    DOI: 10.1057/9780230621725_4
    as

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