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Market participants

Market participants: firms that currently earn revenue in a market or have committed to enter a market soon

Also includes “rapid entrants”: firms that would enter the market without incurring significant sunk costs in response to a price increase (SSNIP)

  • These entrants enter on the basis of the pre-entry price and don’t expect their entrance to affect the price
  • Excluded firms: entrants

Most entrants enter in a timely and likely manner, but their entry is often insufficient

Entrants enter on the basis of their expectations for the post-entry price. They must decide whether entering will be profitable given their entry will likely lead to a decrease in price.

  • Market shares: calculated for all market participants where possible

Typically calculated using historical evidence: Agency also considers predictable effects of ongoing/recent changes

Can be calculated using (a) revenues (typical), (b) unit sales, (c) capacity, (d) reserves (e.g., General Dynamics), or (e) use, whichever is most relevant