| Tekijä: | Wegberg, M. V. Witteloostuijn, A. van. |
| Otsikko: | Credible entry threats into contestable markets: a symmetric multi-market model of contestability. |
| Lehti: | Economica
1992 : NOV, VOL. 59-236, p. 437-452 |
| Asiasana: | ENTRY CONDITIONS CONTESTABLE MARKETS ECONOMETRIC MODELS COMPETITION |
| Kieli: | eng |
| Tiivistelmä: | It is argued in the paper that multi-market competition is an attractive framework for discussing potential entry into a contestable market. The paper represent a first step in developing a multi-market restatements of contestability theory along the lines of Cairns and Mahabir (1988) and Calem (1988). The model shows that perfect contestability results occur only if both firms face sufficient excess capacity: both firms should be able to serve total demand in both markets. The model offers a rationale for an unsustainaible pricing strategy. |
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