Market power30 نوفمبر 2021 2021-11-25 23:07
What does it mean to shift market power to consumers?
The open nature of the Internet doesn’t allow any significant barriers to entery or leaving e-markets, no one can dominate or monopolize the market (however, some Internet- related businesses practice monopolistic competition in several markets due to product variation) In addition, The global competition in e-markets forces the market to reform. various algorithms that can provide consumers with specification searches and comparisons across e-commerce sites. thats why market power shifts to consumers and it becomes harder for firms to maintain high prices
As the consumer is the one who will be able to set the price according to his demand for the commodity and his consumption behavior
تعني ترك المستهلك حر في اختيار السلع التي يريدها وبالتالي من الممكن الوصول لوضع احتكاري فيصبح المستهلك هو المسيطر على قوة السوق .
That mean the consumer became the controller of market he choose any product and the seller and choose the price.
The sellers run to the consumers not the opposite
A buyer has monopsony power if there is an upward-sloping supply curve and only one buyer. A buyer’s monopoly is able to use its market power to capture additional profits for its owners. … From the point of view of the sellers, and possibly across all social welfare, a buyer’s monopoly can undesirable.