3412. Rule Of Reason Market Power Explained

3412. Rule of Reason --"Market Power" Explained Instruction No 1 Request by Plaintiff Given as Proposed Refused Withdrawn Request by Defendant Given as Modified Requested by Given on Court's Motion Judge Instruction No 1 Market power is the ability to increase prices or reduce output without losing market share. The higher a seller's market share, the more likely it has market power. In deciding whether a seller has market power, you should consider how difficult it is for a potential competitor to successfully enter the market. The more difficult it is to successfully enter a market, the more likely a seller has market power within that market. Market power is less likely to exist if it is not difficult for potential competitors to enter a market successfully. Each market has two components: a product market and a geographic market. ________________________________________________________________________________ New September 2003