Relevant market

Under Relevant market the result of market segmentation in a certain respect is understood. The term is used especially in business economics and antitrust law.

• 2.1
• 2.2 External links

Relevant market in Business Administration

With the concept of relevant market is defined in business administration the result of market definition and market definition that a company has made ​​from the subjective point of view and problem situation out.

Industries are considered traditional definition of the market. The problem here, however, is that between industries competitive relationships exist (eg air traffic vs. Rail). Consequently often possible relationships between services are considered.

Operationalisierungsansätze

The price-demand function is given by the market, exogenous variable.

• 2 simple market concept

Each product has its own relevant market.

• 3 concept of physical- technical similarity

The relevant market includes all products that are similar according to fabric, workmanship, form, technical design.

• 4 concept of cross-price elasticity

The relevant market includes all products that are characterized by a high cross-price elasticity.

• 5th basic need approach or concept of functional similarity

The relevant market comprises all goods that meet the same basic need / function. This concept is user -oriented.

• 6 concept of conjectural competitive situation

The relevant market comprises all competing products, which takes into account a provider in its sales plans. This concept is provider- oriented.

• 7 concept of user -oriented / subjective interchangeability

The relevant market comprises all those products which are considered by users as subjective interchangeable.