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Competition law
Basic concepts
History of competition law
Monopoly and oligopoly
Coercive monopoly
Natural monopoly
Barriers to entry
Herfindahl–Hirschman index
Market concentration
Market power
SSNIP test
Relevant market
Merger control
Anti-competitive practices
Monopolization
Collusion
Formation of cartels
Price fixing (cases)
Bid rigging
Tacit collusion
Product bundling and tying
Refusal to deal
Group boycott
Essential facilities
Exclusive dealing
Dividing territories
Predatory pricing
Misuse of patents and copyrights
Enforcement authorities and organizations
International Competition Network
List of competition regulators
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In theories of competition in economics, a barrier to entry, or an economic barrier to entry, is a fixed cost that must be incurred by a new entrant, regardless of production or sales activities, into a market that incumbents do not have or have not had to incur.[1]
Because barriers to entry protect incumbent firms and restrict competition in a market, they can contribute to distortionary prices and are therefore most important when discussing antitrust policy. Barriers to entry often cause or aid the existence of monopolies and oligopolies, or give companies market power.
Barriers of entry also have an importance in industries. First of all it is important to identify that some exist naturally, such as brand loyalty.[2]
Governments can also create barriers to entry to meet consumer protection laws, protecting the public. In other cases it can also be due to inherent scarcity of public resources needed to enter a market.[3]
^McAfee, R. Preston; Mialon, Hugo M.; Williams, Michael A. (May 2004). "What Is a Barrier to Entry?" (PDF). American Economic Review. 94 (2): 461–465. doi:10.1257/0002828041302235. Retrieved January 24, 2023 – via California Institute of Technology.
^Boyce, Paul (October 25, 2022). "Barriers to Entry Definition". Boycewire.com. Retrieved January 24, 2023.
^Hayes, Adam (December 30, 2022). "Barriers to Entry: Understanding What Limits Competition". Investopedia. Retrieved January 24, 2023.
new entrants from joining the industry. There are some potential barrierstoentry that can arise from such a situation. A resource is owned by a single...
have control over the industry. There are high barrierstoentry, which an incumbent would conduct entry-deterring strategies of keeping out entrants reaping...
market power including: High barrierstoentry. These barriers include the control of scarce resources, increasing returns to scale, technological superiority...
wishes to separate." Kenton mentions how "Barriersto exit can be compared with barrierstoentry." All of the above definitions describe barriersto exit...
competition. For a monopoly to exist, there must be high barrierstoentry for new firms. Barrierstoentry must be strong enough to discourage potential competitors...
the industry to abandon the market so that the dominant firm may establish a stronger market position and create further barrierstoentry. Once competition...
procedural switching barriers, financial switching barriers, and relational switching barriers. Procedural switching barriers refer to the time and resources...
explanation of monopsony power in labour markets is barrierstoentry on the demand side. Such barrierstoentry would result in a limited number of companies...
actions. There are few barrierstoentry and exit. Producers have a degree of control over price. The principal goal of the company is to maximise its profits...
where there are prominent barriersto market entry which preclude other firms from easily entering the market. Entrybarriers include high investment requirements...
economic utility and make no trades that do not. No barrierstoentry or exit: This implies that both entry and exit must be perfectly free of sunk costs....
Costs BarrierstoEntry?" (PDF). caltech.edu. Archived (PDF) from the original on 27 March 2016. Retrieved 3 May 2018. "Antitrust Aspects of Barriersto Entry"...
advancements in communication and transportation have drastically reduced barrierstoentry and expanded market reach. Additionally, international business plays...
includes the potential competitor, the enhancements to horizontal collusion, development of barrierstoentry. However, it is still debated over if vertical...
agree to constrain supply. This is usually illegal under national competition law, but some cartels are government-approved. Barrierstoentry make it...
rule-making institutions external to the simple forces of supply and demand which create space for those forces to operate to control productive output and...
in an industry in which high infrastructural costs and other barrierstoentry relative to the size of the market give the largest supplier in an industry...
complexity (or risk) of the supply market (such as monopoly situations, barrierstoentry, technological innovation) and the importance of the purchases or...
through various forces, including barrierstoentry and existing competition. Market concentration ratios also allows users to more accurately determine the...
starving artists desire mainstream success but have difficulty due to high barrierstoentry in fields such as the visual arts, the film industry, and theatre...
Rabil is attempting to mitigate the barriers of entryto play the game of lacrosse and increase overall access to the game. In 2022 Rabil and his brother...
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