Contestable Markets and Market Power
Examination of the theory of contestable markets and its implications for market power, even in concentrated industries.
Key Questions
- Analyze how the threat of entry can influence pricing and output decisions of incumbent firms.
- Differentiate between actual competition and potential competition in shaping market outcomes.
- Assess the policy implications of contestable market theory for competition authorities.
National Curriculum Attainment Targets
Suggested Methodologies
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