Contestability
Contestability theory was developed in the early 1980s by the American economist Will Baumol, who recognised that monopoly providers do not need to be exposed to actual competition in order act competitively, but only the threat of competition. Contestability is not a synonym for competition but rather refers to a situation where a provider faces a credible threat of competition. The concept is fundamentally different to 'market-testing', as it does not require every individual service to be competed.
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Contestability: Developments Since the Book Baumol, William J. and Willig, Robert D. , 2001 International Library of Critical Writings in Economics, 126 (Volume 3), pp.493-520 Baumol's update on the debate USA
Contestability: A Middle Path for Health Care Ham, Chris , 1996 British Medical Journal, 312, pp.30-31 Application of the concept to the NHS by Ham who would later become Director of the Strategy Unit in the Department of Health UK
Democratic Dismissal, Competition, and Contestability Among the Quangos Mulgan, Geoff , 1995 Oxford Review of Economic Policy, 10(3), pp.51-60 Application of the concept to the public sector by Mulgan who would later become Director of the Strategy Unit in the Cabinet Office UK
Single Aviation Markets and Contestability Theory: Getting the Policy Bearing Right Nyathi, M , 1992 University of Sydney, Institute of Transport Studies Australia
The Theory of Contestable Markets Tye, William B. , 1990 New York: Greenwood Press USA
Competition Contestability and Transport Mergers Shepherd, W., 1988 IJTE
Contestable Markets and the Theory of Industry Structure Baumol, William J.; Panzar, J.C. & Willig, Robert D. , 1982 San Diego The original text on contestability theory USA