contestable market



  • noun a theoretical market which does not involve a new entrant in higher costs than other existing producers and does not involve losses on exit; the only constraint on producers is the competition within the market

Health Economics

  • (written as Contestable Market)
    A market in which barriers to entry are low. A perfectly contestable market has a complete absence of barriers to entry: no special licences, patents or copyrights, no high fixed costs, and where no marketing barriers (whether legal or illegal) have been created by incumbent firms.