It has been observed that expertise in a number of basic production techniques can at times enable firms to enter familiar markets without having to invest much in terms of learning costs. If this is true, this would mean that the relevance of supply-side substitutability has to be taken more explicitly into account: should the price-cost ratio increase in a certain market, firms that have the capability of entering into this market without having to sink substantial amounts of costs would be credible potential entrants into that market.
Making European Merger Policy More Predictable
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