Abstract
The theory of contestable markets emphasizes potential competition; yet it is reticent on the identity of potential entrants. Recent literature discusses the (im)possibility of hit-and-run entry for several types of entrants. R. D. Cairns and D. Mahabir (1988) argue that existing firms in related markets are most likely to be capable of hit-and-run entry, but unlikely to be motivated. This paper expands their arguments by sketching a multimarket framework and by discussing a model that captures most of the current debate. The model marks a first step into revising contestability theory along the lines of this debate. Copyright 1992 by The London School of Economics and Political Science.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
