Contestable Markets Redefine Industry Structure for Sustainable Economic Growth
The article discusses how different market structures affect industry performance. It looks at perfectly contestable markets, where competition is high, and how costs and profits are influenced. The researchers explore the concept of natural monopolies and how they can be sustained. They also examine the impact of fixed costs, entry barriers, and public goods on market sustainability. The study highlights the importance of market mechanisms in shaping industry structures and emphasizes the need for long-term sustainability in market dynamics.