Business Glossary

potential consumers in an area where there are no competitive sources for products, and the only choices are to purchase what is available or to make no purchase at all. Generally a captive market is the victim of higher product pricing. Hotel shopping arcades, airport restaurants, and sports arenas are examples of captive-market environments.

sales practice forbidden by Section 3 of the Clayton Act in which a marketer uses economic dominance over the supply of one product to force customers to purchase another product, thereby competing unfairly. For example, the sole manufacturer of a patented pharmaceutical who restricts sale of that drug to customers who also purchase another nonpatented drug. In the absence of a monopoly, it has been difficult for the courts to prove that economic dominance exists and the mere existence of a patent is not adequate evidence.