Contestable Market

Contestable Market Theory is an economic concept that describes a market by which there are just a few companies that, as a result of threat of brand-new entrants, behave within a competitive manner. Some sort of perfectly contestable market has three main features. It is often a market that provides – No entry or exit hindrances, No sunk fees, Access to identical level of technology. A perfectly contestable market isn’t possible in true to life.