credibility

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credibility

  1. 1the extent to which individuals and firms believe that the government will carry out the macro-economic policies that it promises to pursue. Credibility is important in influencing the EXPECTATIONS that individuals and firms have about future economic policies, and these expectations in turn affect their current behaviour.
  2. the extent to which potential market entrants believe that incumbent firms will react to their entry, for example, by cutting their prices. The credibility of such threats by incumbent firms will determine whether potential entrants decide to enter a market.
See BARRIERS TO ENTRY, LIMIT PRICING, POTENTIAL ENTRANT.
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References in periodicals archive ?
So, hey, here's la Carey's hip-hop album, her latest attempt to show she's still down with the kids and stocked up on street-cred.
There's a choice of a wide range of fabrics, and it's got style street-cred - it's available from that high-end interiors "des res" Armani/Casa.
These designs are a mix of precious elements like pearls and crystals, combined with more street-cred materials like PVC and leather, and are really guiet funky.
It thinks it deserves street-cred by pretending to be edgy, like Kids was over a decade ago.
Scriptwriters willing to boost engineering's street-cred could benefit from thousands of pounds worth of prizes aimed at targeting the industry's skills shortage.