by 21st Century Competition | May 8, 2014
Pressure exercised upon incumbent firms by the possibility that new or existing firms will enter a specific market (see Potential competitor). New entrants may be attracted by above-normal profits made in this market by incumbent firms, possibly as a result of weak...
by 21st Century Competition | May 8, 2014
A firm is treated as a potential competitor if there is evidence that this firm could and would be likPely to undertake the necessary additional investments or other necessary switching costs to enter the relevant market in response to a small and permanent increase...
by 21st Century Competition | May 8, 2014
A (deliberate) strategy, usually by a dominant firm, of driving competitors out of the market by setting prices below production costs. If the predator succeeds in driving existing competitors out of the market and in deterring the future entry of new firms, he can...
by 21st Century Competition | May 8, 2014
An undertaking over which the public authorities directly or indirectly exercise dominant influence by virtue of their ownership, financial participation, or the rules which govern it. A dominant influence of public authorities is presumed in particular when they: a)...
by 21st Century Competition | May 8, 2014
Agreement between firms to jointly undertake research and development (R & D) activities, in order to pool know-how and to share the costs and risks of inventing new products. An R & D agreement normally covers the acquisition of know-how relating to products...
