Contestability

In relation to financial markets, the level of barriers to entry for potential competitors. Consolidation can increase contestability. – However, experience shows that even with a very small number of competitors, a large bank can be forced into competitive pricing. – See supervision, capture theory, size effects.

Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!
University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/