Definitions for "Contestable market"
a market in which the threat of competition is enough to encourage firms to act like competitors.
A market in which entry is absolutely free and exit is absolutely costless. The essence of contestable markets is that they are vulnerable to hit-and-run entry.
market in which one firm (or a small number of firms) operates but in which entry and exit are free, so the firm (or firms) in the industry faces competition from potential entrants.