incumbent firm Quick reference
A Dictionary of Economics (5 ed.)
...incumbent firm A firm which is already operating in a market. In a contestable market , where the goods produced by different firms are homogeneous and there are no sunk costs , there is complete symmetry between an incumbent firm and would-be entrants. If goods can vary in quality, so that reputation matters, and if there are any sunk costs, the incumbent is in a stronger competitive position than potential entrants: the incumbent has established market contacts, and has already incurred the sunk costs. An incumbent will have a further competitive...
incumbent firm
The Antiquarian Tradition Quick reference
David Hey
The Oxford Companion to Local and Family History (2 ed.)
...music, and natural history. The country parish where they lived was the focal point for much of this multifarious activity. The major Victorian figure in the distinguished line of scholar–parsons who were interested in all aspects of their parish was Canon J. C. Atkinson , the incumbent of Danby on the North York Moors from 1847 to 1900 . Atkinson calculated that he had walked over 70 000 miles in the course of his clerical duty. During these long walks he developed his keen powers of observation. Cut off from other scholars, he nevertheless published an...
War Reference library
An Oxford Companion to the Romantic Age
...élite in control of the state to dissipate and divert popular opposition, has given way to a focus on the prominence of patriotism in urban societies and middle class life in general. As a ruling device, patriotism is seen operating to best effect in the towns, where incumbent élites, interested in developing civic cultures and often faced with the problems of controlling large, disparate populations, readily appreciated how it could be used to unify their communities and secure their authority. National defence and the concerns of urban rulers meshed...
firm
proxy contest
product proliferation
barriers to exit
limit pricing
five forces model
barriers to entry
natural monopoly
Dan Quayle
Charles Evans Hughes
limit pricing Reference library
Dictionary of the Social Sciences
...in a market and allows the incumbent firm to earn above-normal profits. The groundbreaking research in this area was done by Bain Sylos-Lambini and Franco Modigliani . Limit-price theory is based on a series of assumptions about the actions of incumbent and entering firms: first, that the incumbent firm is already producing at a level that assures minimum cost, and second, that an entering firm will have higher costs due to smaller output. The entering firm bases its decision on the belief that the incumbent firm will maintain its present level of...
limit pricing Quick reference
A Dictionary of Economics (5 ed.)
...limit pricing A policy an incumbent firm can use to discourage entry by a new firm into its market. Limit pricing involves charging a low enough price—the limit price—for entry to appear unprofitable to other firms. Limit pricing is not a credible threat: charging the limit price is not the optimal strategy after entry has occurred, and it is always best for the incumbent firm to accommodate the...
firm Quick reference
A Dictionary of Economics (5 ed.)
...are usually organized as companies. A single firm may have numerous establishments or branches, such as factories or shops. See also dominant firm ; evolutionary theory of the firm ; incumbent firm ; managerial theories of the firm ; marginal firm ; multinational ; multi-plant firm ; multi-product firm ; representative firm ; worker-controlled firm...
proxy contest Reference library
The Handbook of International Financial Terms
...contest or proxy fight . The use of shareholders ' votes at company meetings to influence the incumbent management, to make or obtain favourable resolutions, or to take control of the firm by replacing the...
product proliferation Quick reference
A Dictionary of Economics (5 ed.)
...product proliferation Marketing of many varieties of the same product by a producer. It is sometimes regarded as a waste of resources and a barrier to entry , as the incumbent firm may use it to occupy the gaps in the market that could potentially be used by an entrant firm...
barriers to exit Quick reference
A Dictionary of Economics (5 ed.)
...barriers to exit Obstacles that make it costly for a firm to exit a market. Barriers to exit intensify competition in a market because incumbent firms have little choice but to ‘stay and fight’. Examples of barriers to exit include the costs involved with the write-off of assets, redundancy payments, penalties for terminating contracts, and the loss of reputation and...
