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Market Power

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  • Theodoulou, Ivi

Abstract

This chapter begins with an overview of market power; its various sources, and how it can be measured. The potential economic and social consequences of market power are also taken into consideration. The chapter then provides a description of the theoretical models behind market power. A description of one of the early market power paradigms is provided. The Structure Conduct Performance paradigm (SCP). As one of the first such assessment paradigms, this model provides a theoretical overview of the theory some empirical findings from its application to banking, further developments of the model with regard to modifications based on feedback effects, as well as criticisms of the paradigm. The chapter then elucidates New Empirical Industrial Organisation or NEIO models, presents a comparison with SCP, and offers a critique of this paradigm.

Suggested Citation

  • Theodoulou, Ivi, 2023. "Market Power," MPRA Paper 126359, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:126359
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    References listed on IDEAS

    as
    1. Bresnahan, Timothy F., 1982. "The oligopoly solution concept is identified," Economics Letters, Elsevier, vol. 10(1-2), pages 87-92.
    2. Bresnahan, Timothy F., 1989. "Empirical studies of industries with market power," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 17, pages 1011-1057, Elsevier.
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    Keywords

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    JEL classification:

    • D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection

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