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A local RES is defined as entities under a distribution utility (DU) that may engage in the business of supplying electricity to the contestable market without need of obtaining a license from the ERC.
Through analysis of three requirements, i.e., same access to technology for entrants and incumbents, low sunk costs (ships can be easily diverted from one route to another), and competitions from tramp and bulk carrier, Davies [36] concluded that the container industry is a contestable market. Haralambides [37] also claimed that, irrespective of market structure and capital concentration, the real issue is how accessible (contestable) the market is to new competition.
"We define a perfectly contestable market as one that is accessible to potential entrants and has the following two properties: First, the potential entrants can, without restriction, serve the same market demands and use the same productive techniques as those available to the incumbent firms ...
Yet, these policy documents do not refer in detail to the three conditions of a contestable market: that entry of new firmsis costless, the market is susceptible to hit-and-run entry and entry is reversible (Shepherd 1984: 1995).
Because of the threat of new entrants, existing companies in a contestable market are constrained in the extent to which they are able to act anti-competitively, even if they are few in number.
A key question concerning the necessity to regulate dominant OTTs in the first place concerns the existence of a contestable market (BAUMOL, 1982).
The potential entry allowed by that feature is a pillar of the contestable market. A competitive market does not require perfect competition and the existence of uncountable set of suppliers.
"A more dynamic, contestable market will reduce the dangers that come with overfamiliarity and long, unchallenged tenures."
hwt t to a the financial c bog Laura Carstensen, who led the investigation, said: "A more dynamic, contestable market will reduce the dangers that come with over-familiarity."
International connectivity to enable Wales to compete in an increasingly contestable market. This includes connections for our exports of food and manufactured products and for inbound tourism to and from England's large conurbations, other European Union member states and North America and the Far East.
This case also includes a natural monopoly operating in a perfectly contestable market, and a sales-maximizing firm subject to break-even constraints.
This actually represents the final objective of free market or contestable market (Mosteanu, 2000).