Contestable Markets Under Uncertainty

摘要: In this article we present a model of market which is ex post contestable. We show that in characterized by uncertainty firm will face tradeoff between efficiency and flexibility generally make some precommitments to take advantage ante technologies. the potential entry incumbent increase his so doing affect probability entry. The degree contestability therefore endogenously determined choice precommitments. extent be used probabilities shown depend on production, adjustment costs, uncertainty. particular, becomes "more contestable" as relative production increases conditions become more uncertain.