"Power is money in the game just like it is anywhere in the world," the Wanderers boss said.
"It's difficult for clubs like ours and if big spending by the top clubs keeps continuing in the future, it could be a bigger closed shop than ever before.
"And that might by a little dangerous for the excitement and the attraction of the Premiership.
"What happens is always going to depend on the spending power of clubs and then it will depend on how well clubs spend that money.
"If all the top clubs get that right, it will become very difficult indeed for clubs like us to compete for fourth spot.
"They have to spent it right and people have spent it wrong in the past.
"You have to put Tottenham in the same bracket as those other four clubs now because they have spent heavily on the younger end of the market.
"They are right up there at the moment and they will hope that their investment in young players for the future will mean a continuation of that position.
"We are competing at the top end of the table at the moment, but quite how long we can do it is questionable if that sort of money keeps being invested in those clubs.
"Spending power is very important to any football club - but you can see the importance of how it is spent by the shrewd way Alan Pardew and Paul Jewell have spent their money this season at West Ham and Wigan.
"That's got them in the top half of the Premiership."
Allardyce also spoke of Kevin Nolan's push for National recognition. The former England Under-21 midfielder scored his ninth goal of the season in the 1-1 draw at Arsenal on Saturday and Allardyce believes the player deserves a chance at international level.
"He was outstanding [at Arsenal] and he is our leading scorer from the centre of midfield - that says a lot for him and for us," he told the club's official website.
"England is a big ask for him and Sven [Goran Eriksson] should look at him to see whether he is good enough to get in the squad."