A market that, even though it has only a single or a small number of sellers, could readily admit more, so that the pricing behavior of current sellers is constrained by the potential for entry. Term introduced byBaumol et al. (1982)
Related information about contestable market:
- Contestable market - Wikipedia, the free encyclopedia
Although, a perfectly contestable market is not possible in real life, therefore we talk about the degree of contestability of a market. The more contestable a ...
- Microeconomics - Contestable Markets
For a contestable market to exist there must be low barriers to entry and exit so that there is always the potential for new suppliers to come into a market to ...
- Contestable Market Theory Definition | Investopedia
An economic concept that refers to a market in which there are only a few companies that, because of the threat of new entrants, behave in a competitive ...
- What is contestable market? definition and meaning
Definition of contestable market: A market structure that allows for entry and exit at any given time period. A contestable market typically only consists of a few ...
- Contestable market Definition | Economics Help
A contestable market is a market structure where there is freedom of entry and exit. It is a market structure which must have low sunk costs (non recoverable ...
- Contestable markets
In essence, a contestable market is one with zero entry and exit costs. This means there are no barriers to entry and no barriers to exit, such as sunk costs and ...
- The Theory of Contestable Markets - Krannert - Purdue University
(D4) A perfectly contestable market is a market in which sustainability is a necessary condition .... The crucial feature of a contestable market is its vulnerability ...
- contestable market (economics) -- Britannica Online Encyclopedia
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