TERMIUM Plus^®

Record 1,  Textual support,  English

Record number: 1, Textual support number: 1 DEF

A market where there is freedom of entry and exit is costless. Potential entrants can enter such markets whenever profits exceed the normal rate.  2, record 1, English, - contestable%20market

Record number: 1, Textual support number: 1 OBS

A contestable market is one into which entry is abs olutely free, and exit is absolutely costless. We use "freedom of entry" in Stigler's sense, not to mean that it is costless or easy, but that the entrant suffers no disadvantage in terms of production technique or perceived product quality relative to the incumbent, and that potential entrants find it appropriate to evaluate the profitability of entry in terms of the incumbent firms' pre-entry prices. In short, it is a requirement of contestability that there be no cost discrimination against entrants. Absolute freedom of exit, to us, is one way to guarantee freedom of entry. By this we mean that any firm can leave without impediment, and in the process of departure can recoup any costs incurred in the entry process.  3, record 1, English, - contestable%20market

Record 1,  Textual support,  French

Record number: 1, Textual support number: 1 DEF

Marché où l'entrée est absolument libre et où la sortie est absolument exempte de coût. La firme qui entre ne souffre d'aucun désavantage au niveau des techniques de production ou de la qualité du produit par rapport aux firmes déjà implantées sur le marché.  2, record 1, French, - march%C3%A9%20disputable

Record 1,  Textual support,  Spanish