The concept of 'Contestability' in digital markets refers to:
A. Only the number of existing competitors
B. The ease with which new entrants can challenge incumbent platforms despite the presence of network effects and data advantages
C. Only the size of the incumbent
D. The complete impossibility of entry
Answer: Option B
Solution (By JKSSB Mock Tests)
Contestability measures the extent to which potential competition can discipline incumbents; in digital markets it is often impaired by network effects, data advantages and switching costs.
No comments yet. Be the first to start the discussion!