ER / Concepts
Market Structure
Created
Definition
Characteristics and organization of a market, including
- (Who) Number of firms
- (What) Nature of products
- (Entry) Barriers to entry and exit
- (How) Buyer and seller power, cost and technology conditions, strategic interaction, information and institutional conditions
Two market dimensions
- Product dimension: Which products are sufficiently substitutable?
- Geographic dimension: Over what geographic area can buyers realistically substitute among suppliers?
Note
Structure Power. See: Market Power