Case Study

Assessing Market Power

A company, 'AquaPure,' has developed and patented a unique home water filter that is the only one on the market capable of removing a specific, newly discovered industrial contaminant. A regulatory body is investigating whether AquaPure has an unfair competitive advantage. Analyze how the regulator's conclusion about AquaPure's market power would differ depending on whether they define the relevant market as (a) the 'market for filters that remove the specific new contaminant,' (b) the 'market for all home water filters,' or (c) the 'market for all home water purification methods,' which includes boiling water and using purification tablets.

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Updated 2025-08-20

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