Perfectly contestable markets
This is an old revision of this page, as edited by DanH (talk | contribs) at 06:31, October 24, 2007. It may differ significantly from current revision.
Perfectly contestable markets are markets with no barriers to entry and extremely low startup costs. Because the market is so easy to get into, the prices stay very low. If they were raised, someone would sell the same product at a lower price, because the market is so easy to get started in. Businesses like newspaper stands are an example.