Finance:Captive market

From HandWiki

A captive market is a market where the potential consumers face a severely limited number of competitive suppliers; their only choices are to purchase what is available or to make no purchase at all. The term therefore applies to any market where there is a monopoly or oligopoly.

Examples of captive-market environments include the food markets in cinemas, airports, and sports arenas, college textbooks, US cable companies, the Kosher food market in the United Kingdom , printer refills, truck stops due to fueling contracts and semi truck regulations, and phone calls and food in jails and prisons. Academic publishers, such as Elsevier, operate captive markets.[1]

During the 2020 NBA Bubble, Jimmy Butler sold coffee for $20 a cup; "You can't get coffee anywhere here... People here can afford it," he said.[2] Professional team sports have often been described as an example of captive markets,[3] with strict self-policing rules amongst supporters making it virtually impossible for fans to switch allegiances,[4] and unwritten conduct rules dictating that official club merchandise should normally be worn to games by a majority of fans,[5] allowing the teams themselves to raise prices as high as they feel like, knowing that their supporters have little choice but to keep buying.[citation needed]

See also

References