CORNERED MARKET Meaning and
Definition
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A cornered market is a situation in which a single entity or group of entities possesses a significant control or dominance over the supply and availability of a particular product or service. In this scenario, the party or parties holding the cornered market have effectively eliminated or minimized any competition, giving them substantial power over the market and its pricing.
To corner a market, the controlling entity usually acquires a large portion of the product or service, thereby reducing the supply available to other market participants. This intentional manipulation of supply allows the entity to inflate prices, as demand outweighs the limited quantity available from other sources. The cornered market strategy typically involves the accumulation of substantial quantities, to the point where it becomes difficult or nearly impossible for competitors to obtain a sufficient supply to satisfy market demands.
The consequences of a cornered market can be significant. Prices tend to rise significantly due to limited supply, leading to potential economic inefficiencies and consumer dissatisfaction. Additionally, a cornered market often restricts or eliminates opportunities for other businesses to enter or compete in the market. This concentration of power can stifle innovation, limit consumer choices, and negatively impact market dynamics.
Regulatory authorities, such as antitrust agencies, are vigilant in monitoring markets to prevent or address cornered market situations. Their role is to ensure fair competition and protect the interests of consumers and the overall market by enforcing laws that discourage or penalize anti-competitive practices, including cornering a market.
Common Misspellings for CORNERED MARKET
- corned market
- cornerd market
- corner market
- xornered market
- vornered market
- fornered market
- dornered market
- cirnered market
- ckrnered market
- clrnered market
- cprnered market
- c0rnered market
- c9rnered market
- coenered market
- codnered market
- cofnered market
- cotnered market
- co5nered market
- co4nered market
- corbered market
Etymology of CORNERED MARKET
The term "cornered market" is derived from the phrase "to corner the market". The use of "corner" in this context comes from the idea of trapping or pressing something into a corner, which creates a sense of control and dominance over that particular thing. In a financial context, when someone "corners the market", it means that they have gained exclusive control over a certain commodity or product, usually through buying up a significant proportion of the available supply. This dominant position allows them to dictate prices and exert significant influence over the market.
