The Market Power Of The Operators To Measure The Anti-monopoly Law

This article subscribes to the view that the crucial concern of competition policy and law is the possible inefficiencies of market power. The exercise of market power by a firm requires that the firm can restrict output in a relevant market, that this restriction is profitable for the firm and that price is raised above the level implied by effective competition. Before addressing the question of how market power may be assessed, the preliminary work of how the relevant market must be addressed. The definition of relevant market is one of the key issues of this article. Definition of relevant market, which may be founded in the economic literature on industrial organization, are clearly influenced by the characteristics of the model of perfect competition. We then discussed various basic indicators that assist in the assessment of whether a firm has (or firms have) market power. These basic indicators are: the number of competing suppliers of the same products, their market shares and market concentration; the existence of barriers to entry and potential competition; the existence of barriers to expansion; the degree of product differentiation. Of course, consideration of these factors alone does not provide a complete competitive analysis. A complete competitive assessment will depend on the specific facts of the industry under investigation and the specific behaviour in question.In addition to discussing market power in terms of pricing power, we also noted that market power can also be manifested via the power to exclude rivals and argued that there occasions when the analysis is simplified by thinking in these terms, rather than in terms of power over price. We argued that measuring the profitability of firms is usually not a very useful guide to measuring whether a firm is exercising market power. Finally, it was noted that, on occasion, anti-competitive effects can be observed directly, without a need to define a market or formally analyses market power.The conclusion part points out the purpose and the significance of this paper. It also gives a conclusive explanation of the whole analysis.