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Table 1 A glossary of key terms and definitions related to market power

From: The influence of corporate market power on health: exploring the structure-conduct-performance model from a public health perspective

Allocative efficiency The allocation of society’s limited resources to their most valuable use
Barriers to entry (market) Market-based structural factors that impede or prevent a new firm from entering a market
Brand/product differentiation The ability of a firm to differentiate its brands/products from those of its rivals
Common shareholder ownership The situation that arises when investors, usually institutional investors, own shares in a number of firms active in the same market
Distributive efficiency The distribution of costs (including externalised costs) and benefits generated from market transactions in the fairest and most just manner
Dynamic efficiency The ongoing development of both process innovations (e.g. improvements in organisational, production or delivery methods that reduce cost or increase quality) and product innovations (i.e. new product and packaging development) that provide benefits to both the firm and society at large
Gross profit margin The difference between the total sales revenue and the total cost of production
Industry A group of establishments that are engaged in the same or similar kinds of production activity
Intangible assets An asset, such as a brand or trademark, that does not have a physical or financial embodiment
Market A market is the product and geographic space in which rivalry and competition take place
Market capitalisation The discounting of a corporation’s expected, risk-adjusted future profit and interest payments to their present value
Market failure The situation defined by an inefficient allocation and distribution of resources, wealth and costs in a market system.
Market strategy A concerted pattern of actions taken in the market environment for the purpose of improving corporate performance (i.e. maximising profits and shareholder returns)
Monopoly A market structure in which only one firm sells a particular commodity
Monopsony A market structure in which there is only one firm that buys goods and services offered by many suppliers
Non-market strategy A set of actions designed to improve or protect overall corporate performance by influencing the interconnected policy, regulatory, institutional, ideological and broader socio-political structures that shape market environments
Oligopoly A market structure in which only a few firms sell a particular commodity
Oligopsony A market structure in which there are only a few firms that buys goods and services offered by many suppliers
Productive efficiency The production of products or services at the lowest possible cost
Share repurchase The practice of a firm buying back its own shares
Transfer pricing The manipulation of pricing and payments for intermediate outputs, brand names and patent use between subsidiaries in order to maximise profits in low-tax jurisdictions
Vertical integration The extent to which a firm owns or controls its suppliers, distributors or buyers