Abstract
In recent years the theory of potential competition has received renewed interest among economists for two reasons. First, the theoretical basis of potential competition has been strengthened by the work of Baumol and others on contestability, an extreme form of potential competition.1 Second, potential competition has been used as a justification for relaxing antitrust constraints on mergers among actual market competitors.2
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Amel, D.F. (1989). An Empirical Investigation of Potential Competition: Evidence from the Banking Industry. In: Gup, B.E. (eds) Bank Mergers: Current Issues and Perspectives. Innovations in Financial Markets and Institutions, vol 2. Springer, Dordrecht. https://doi.org/10.1007/978-94-009-2524-3_2
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DOI: https://doi.org/10.1007/978-94-009-2524-3_2
Publisher Name: Springer, Dordrecht
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