prijsmaker

A "prijsmaker" is a Dutch term that translates to "price maker" in English. It refers to an entity, typically a company, that has the power to influence the market price of a good or service rather than accepting the prevailing market price. This is in contrast to a "price taker," which must accept the market price as given.

Price makers are usually found in markets that are not perfectly competitive. These include markets with a few dominant firms (oligopoly) or a single dominant firm (monopoly). In such situations, a price maker can set its prices to maximize its profits, considering the potential reactions of competitors and the demand from consumers. Factors that contribute to a firm's ability to be a price maker include product differentiation, significant brand loyalty, high barriers to entry for new competitors, or control over essential resources.

The ability to be a price maker gives a firm considerable market power. However, this power is not unlimited. Price makers still face constraints from consumer demand and the threat of competition, even if it is less immediate. If a price maker sets prices too high, consumers may reduce their purchases or seek alternatives if available. The specific degree of price-making power can vary significantly depending on the market structure and the firm's specific position within it.