PDSnet Glossary

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Introductory Technical Fundamental Economics Opinion Sectors International Regulatory Other Markets

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Definition

A company or industry that has no power over the pricing of the products which it sells. Typically, mining companies have to accept the internationally set price for their commodity. They cannot increase their prices if their costs increase. This is in contrast to, for example, retailers who are price makers and can increase their prices if their costs increase, provided, of course, that they do not face aggressive competition. In general the more brand loyalty a product has the more control the company has over its pricing. Thus for example, Coca Cola can command a price premium over Pepsi and other colas because of brand loyalty.

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