Chapter 6 Supermarket power: winners and losers

Question 1

Market power

Answer 1

The power to influence market conditions, including price, independently of competitors.

Question 2

Buying power

Answer 2

The relative bargaining power between firms and their suppliers.

Question 3

Domination

Answer 3

To impose upon or constrain the free choice of others so that they have no choice but to comply.

Question 4

Zero-sum game

Answer 4

A situation in which one party’s gain is balanced by another party’s loss. If you subtract total losses from total gains, they sum to zero.
Dennis Wrong (1997), power is a zero-sum game.

Question 5

Positive-sum game

Answer 5

A situation in which the sum of total gains and losses of all parties involved is positive; that is, they sum to more than zero.

Question 6

Monopoly

Answer 6

A position where a firm, or group of firms, has the power to prevent, restrict or distort competition in a particular market.

Question 7

Coercion

Answer 7

To compel by force or its threatened use.

Question 8

Global supply chain

Answer 8

A chain of suppliers that cuts across national borders, drawing firms and contractors into the process of making and delivering a single product.

Question 9

Sample

Answer 9

A subset of a population that is used to represent the entire group as a whole.

Question 10

Mutual exploitation

Answer 10

An economic situation that both firms and workers are able to exploit to their advantage without either side losing out.