Market environments e Dominant Firm Many firms, but one much larger than the rest. The large firm's decisions affect the payoffs of each small firm. Decisions by any one small firm do not noticeably affect the payoffs of any other firmMarket Environments ◆Dominant Firm: Many firms, but one much larger than the rest. The large firm’s decisions affect the payoffs of each small firm. Decisions by any one small firm do not noticeably affect the payoffs of any other firm