Market Power

Market Power and International Trade Economy

In relation to international trade economy, Christopher Mark (1993) provided the following definition of Market Power: The ability of an individual firm to exert control over prices prevailing in the markets for its products or services. The highest degree of market power is associated with a monopoly, although all firms except those in perfectly competitive markets possess some degree of market power. Countries' competition policies generally are aimed at curbing the perceived economic and political costs associated with market power.