contestability

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contestability

The ability to challenge or compete, specifically regarding a contract for goods or services in the UK. Contestability is integral to NHS policy, and central to ensuring fair competition within the market for NHS funded services.
References in periodicals archive ?
RES are the entities licensed by the ERC to supply electricity to end-users in contestable market.
In a perfectly contestable market there must be frictionless reversible entry.
Policy decisions have been based on a broad interpretation of contestability, simplified to infer that the removal of regulatory barriers to market entry is sufficient to create a contestable market.
1982): Contestable markets and the theory of industry structure, San Diego: Harcourt Brace Jovanovich.
Because of this, we can expect our political arena to become more like contestable markets rather than a monopoly.
The ambition of this theory was to abandon the abstract criteria of perfectly competitive markets and substitute them with the notion of perfectly contestable markets (Baumol, et al.
The threat of intervention in the theory of contestable markets is considered affecting the production and prices decisions made by incumbent firms in an industry.
incumbent must, in contestable market theory, compete.
Subsequent empirical work attempted to evaluate the effectiveness of the contestable market hypothesis on those markets already deregulated with a contestable market framework.
The Contestable Market Theory framework proposes that a potential competitor can use any strategy, even the short-run possibility of profit gain, because he can enter the market and gain profit before prices have changed, and leave the industry having no costs.
Through a contestable market situation, fares would be kept at a reasonable level and passengers would be better served.
The review covers much ground--traditional textbook analyses, the contestable market approach of Baumol, Panzer, and Willig, the application of Coase's classic 1937 article on the extent of the firm, the relevance to electric power, and the history of the concept.