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Power Over Others
Power over others is a form of economic power where an actor can command others to perform actions in the actor's interest. This is achieved by effectively threatening to impose significant costs on those who do not comply, compelling them to act in ways they would not have chosen otherwise.
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Social Science
Empirical Science
Science
CORE Econ
Economics
Economy
Introduction to Microeconomics Course
The Economy 2.0 Microeconomics @ CORE Econ
Ch.5 The rules of the game: Who gets what and why - The Economy 2.0 Microeconomics @ CORE Econ
Ch.6 The firm and its employees - The Economy 2.0 Microeconomics @ CORE Econ
Related
Market Power
Sources of Employer Power in the Labour Market
Bargaining Power
Analyzing Economic Power in a Business Scenario
A large tech company is the only major employer in a small, isolated town. As a result, it can offer wages below the industry average. Separately, to meet a tight deadline, a manager tells their team they must work an upcoming weekend, stating that anyone who refuses will be fired. How can the two forms of economic power at play be best distinguished in this scenario?
Match each form of economic power with the scenario that best exemplifies it.
Distinguishing Forms of Economic Power
Identifying Economic Power in a Labor Scenario
A pharmaceutical company holding the exclusive patent for a life-saving medication exercises 'power over others' when it doubles the drug's price, because patients are compelled to purchase it to survive.
A technology firm is the sole provider of a specialized software essential for the operations of many small businesses. The firm decides to increase its annual subscription fee by 50%, knowing that its customers have no viable alternatives and must pay the higher price to continue operating. The firm is exercising the form of economic power known as _______________.
Evaluating the Impact of Economic Power in the Gig Economy
When an employer successfully compels an employee to perform an undesirable task by threatening termination, which of the following is the most crucial underlying economic condition that gives this threat its force?
Evaluating an Employer's Use of Economic Power
Power Over Others
Learn After
A manager at a remote factory, where alternative employment is scarce, informs an employee that they must take on an additional, undesirable task outside their job description. The employee is aware that refusing this task will likely lead to their dismissal. The employee complies and performs the task. What is the fundamental mechanism that allows the manager to direct the employee's actions in this situation?
Evaluating Economic Power in Landlord-Tenant Relationships
Analyzing Power Dynamics in a Loan Agreement
Differentiating Economic Power Mechanisms
A highly sought-after software engineer, with multiple competing job offers, demands a salary 20% above the company's initial offer. The company, needing her specific skills for a critical project, agrees to her terms. This situation is an example of the engineer exercising power by compelling the company to act through the threat of imposing a significant cost.
Match each economic scenario with the primary mechanism of influence being demonstrated.
Constructing a Scenario of Economic Power
A large corporation is the sole major employer in an isolated town. The corporation announces a mandatory, unpaid overtime requirement for an upcoming project, stating that any employee who refuses will be terminated. Due to the lack of other job prospects in the area, nearly all employees comply. Which of the following is the most critical factor that gives the corporation the ability to enforce this new requirement?
Evaluating a Buyer's Influence Over a Supplier
Analyzing Power Dynamics in a Supply Chain