Logged out
Access All our Essays in an Instant
Swap your work for FREE access, or pay £4.99 for instant access
With reference to one transport market, discuss the extent to which it is contestable.
Member rating: No Rating | Words: | Submitted: Fri Nov 19 2004
Page Preview
On the left is an image preview of every page of this document, and below are the first 150 words with formatting removed:
With reference to one transport market, discuss the extent to which it is contestable. (15 marks) A contestable market is a market system that if working properly requires very little government intervention, regulating or controlling it. It was first applied to the US domestic airline industry, and since then has been applied to many international transport markets, including some in the UK. There are important features that will need to be defined before I can comment on how my chosen transport market, is or is not a contestable market. Firstly, in a contestable market there is free entry, with no sunk costs for entry into the market, these are costs that cannot be recouped at liquidation. This implies that new and existing market providers will have the same cost structure as in a perfectly competitive market. Another feature is the number and size of firms are irrelevant. If a contestable market...
Get instant access
- Instant, unlimited access to our documents in full
- Swap your work for free access, or pay £4.99
- To see the full version of this document and 149,958 others
