Winner Takes All

A "winner takes all" market is one where the best performer can take the majority of the business, leaving very little for competitors. Winner-takes-all markets occur when it costs the market leader very little to serve one more customer. For example, if one nightly news broadcast is seen as the best, then there is no reason why everyone should not watch it. It is only possible for that one business to take the vast majority of the market because there is zero additional cost in serving one more customer.

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