Potential competition: Difference between revisions

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	'''Potential competition''', a fundamental conception in ], refers to the possibility of new entrants into a given market. The opposite is a ] which is a situation where competition is against the law.

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	The market in question can be defined in both product and geographic terms, or both. See ], i.e. it can refer to the market for ] in ].
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	Potential competition might be represented for that particular market by local shoe manufacturers, who could without prohibitive expense re-tool their machinery to make sneakers. Or it could refer to the sneaker manufacturers of northern New Jersey, who could move their product across the ] if profits there proved enticing.
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	The fact that there is the potential for competition pressures defacto monopolies to keep prices low.

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Latest revision as of 20:33, 13 March 2024

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