[dragonwriter]

In the antitrust sense, the standard set upthread, market power requires pricing power, which inn turn requires that there is both some market demand and inefficient competition from market substitutes (which need not be identical) to constrain the monopolists ability to set prices and extract rents.

[AnthonyMouse]

Pricing power doesn't actually require demand, it's just that nobody cares about the markets where there is no demand. But it's still a monopoly, which you would notice immediately if any demand ever came to exist, the hope for which is why people even bother applying for those patents.

[dragonwriter]

Without demand, the test for pricing power (the ability to raise prices from some level at which there are nonzero sales without losing sales) cannot be satisfied -- you can't have market power with no market.

[AnthonyMouse]

> Without demand, the test for pricing power (the ability to raise prices from some level at which there are nonzero sales without losing sales) cannot be satisfied -- you can't have market power with no market.

In theory that's the test, but it doesn't actually work. In practice market power isn't binary. There is always a substitute for anything if you jack the price up high enough. And a monopolist would jack the price right up to that point, so that increasing it any more would cost sales.

But the zero volume case is the divide by zero case anyway. A test isn't going to give you a yes or no, it's going to give you NaN. That doesn't mean there is no market power, it only means you can't tell without a buyer. And in the patent case, as soon as there is a buyer there is market power.