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How Relevant-Market Breadth Changes Apparent Monopoly Power
How the relevant market is defined affects a firm's measured market share and apparent monopoly power. A narrow definition that excludes substitutes can produce a high measured share, while a broader definition that includes substitutes typically produces a lower share. This change affects the initial antitrust assessment, but actual market power also depends on the competitive constraints imposed by substitutes, reflected in the elasticity of demand facing the firm.
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Introduction to Microeconomics Course
The Economy 2.0 Microeconomics @ CORE Econ
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The Economy 2.0 Macroeconomics @ CORE Econ
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