The behaviour of firms or individuals that is aimed at influencing the structure of a market. In traditional economics, such situations as monopoly or oligopoly were seen as the outcome of technological conditions and the state of demand. More recently, it has been observed that a particular firm or individual can influence its competitors in the market in various ways, for example by threatening a price war if other firms attempt to enter the market. See industrial organization economics. See also game theory; marketing warfare strategy; predatory pricing strategy.
Subjects: Business and Management.