Winner-Takes-All Market

Definition of 'Winner-Takes-All Market'


A market in which the best performers are able to capture a very large share of the rewards, and the remaining competitors are left with very little. The expansion of winner-takes-all markets widens wealth disparities because a select few are able to capture increasing amounts of income that would otherwise be more widely distributed throughout the population.

Investopedia explains 'Winner-Takes-All Market'


Many commentators believe that the prevalence of winner-takes-all markets is expanding as technology lessens the barriers to competition within many fields of commerce. A good example of a winner-takes-all market can be seen in the rise of large multinational firms, such as Wal-Mart. In the past, a wide variety of local stores existed within different geographic regions. Today, however, better transportation, telecommunications and information technology systems have lifted the constraints to competition. Large firms like Wal-Mart are able to effectively manage vast resources in order to gain an advantage over local competitors and capture a large share in almost every market they enter.


Filed Under:

comments powered by Disqus
Hot Definitions
  1. Cash and Carry Transaction

    A type of transaction in the futures market in which the cash or spot price of a commodity is below the futures contract price. Cash and carry transactions are considered arbitrage transactions.
  2. Amplitude

    The difference in price from the midpoint of a trough to the midpoint of a peak of a security. Amplitude is positive when calculating a bullish retracement (when calculating from trough to peak) and negative when calculating a bearish retracement (when calculating from peak to trough).
  3. Ascending Triangle

    A bullish chart pattern used in technical analysis that is easily recognizable by the distinct shape created by two trendlines. In an ascending triangle, one trendline is drawn horizontally at a level that has historically prevented the price from heading higher, while the second trendline connects a series of increasing troughs.
  4. National Best Bid and Offer - NBBO

    A term applying to the SEC requirement that brokers must guarantee customers the best available ask price when they buy securities and the best available bid price when they sell securities.
  5. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an investor has bought securities on margin, the minimum required level of margin is 25% of the total market value of the securities in the margin account.
  6. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
Trading Center