Single-seller

A 'single-seller' refers to a market structure or business model where only one entity controls the entire supply of a specific product or service within a defined geographical area or market segment. This sole provider enjoys exclusive rights, dictating pricing, availability, and distribution, essentially eliminating competition. The dominance of a single-seller can result from factors like unique resources, patents, legal monopolies, or significant barriers to entry. This contrasts sharply with competitive markets characterized by multiple sellers offering similar goods or services. The presence of a single-seller can potentially limit consumer choice, and innovation, and may result in higher prices and lower quality unless it is regulated.

Single-seller meaning with examples

• The new technology, protected by an unbreakable patent, created a single-seller situation in the energy sector. They controlled all distribution, and prices were set high to maximize profit, leaving consumers with few, if any, viable alternatives. The regulatory bodies were concerned about the stifling of innovation in the market.
• The remote island's only internet service provider acted as a single-seller, controlling speeds and fees. The locals had no other option. Attempts to introduce a competitor were thwarted by logistical and governmental challenges. Consequently, residents suffered from poor and expensive internet access.
• Following the acquisition, the merged company became a single-seller of specialized medical equipment in the state. This consolidation raised antitrust concerns, since it eliminated all the previous competitors and gave the new entity control over supply.
• The municipal government granted a single-seller agreement to a waste disposal company for the city. This guaranteed stable service for all residents, but there were valid questions as to whether the deal offered the most cost-effective service for all parties involved.