Market structure shaped by dominant corporations from "summary" of The New Industrial State by John Kenneth Galbraith
In the modern industrial system, the structure of the market is not solely determined by the forces of supply and demand, as traditional economic theory suggests. Instead, it is shaped by dominant corporations that have significant control over production, pricing, and distribution. These dominant corporations operate in a way that is distinct from the competitive model outlined in traditional economic theory. They have the power to influence prices, limit competition, and shape consumer preferences through their control over advertising and marketing. As a result, these corporations are able to maintain their dominant position in the market over time, creating a market structure that is characterized by a lack of competition and a high degree of concentration. This concentration of economic power in the hands of a few dominant firms has significant implications for the functioning of the market as a whole. One key consequence of this market structure is the emergence of what I refer to as the "technostructure" - ...
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