contestable market

contestable market definition - business

contestable market

A market dominated by few firms but with nominal barriers to entry, such that potential competition causes existing firms to operate on a competitive basis. Rising profits would be likely to result in new entries in a contestable market.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.