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Topic: Barriers to entry

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	Barriers to entry - Wikipedia, the free encyclopedia
		In economics and especially in the theory of competition, barriers to entry are obstacles in the path of a firm which wants to enter a given market.
		A common barrier is the required amount of investment especially in industries with economies of scale and/or natural monopolies.
		Examples of barriers restricting individuals from entering a job market include educational, licensing, or quota limits on the number of people who can enter a certain profession such as that of lawyer, and educational, licensing, and experiential requirements for people who wish to be neurosurgeons.
	en.wikipedia.org /wiki/Barriers_to_entry (652 words)

	Teacher's Corner: Shedding Light on Market Power: Library of Economics and Liberty
		Barriers to entry can be divided into two broad categories, those that completely prevent new firms from entering a market, and those that raise the costs of firms that enter a market.
		The major barriers to entry confronted by classical economists were government licenses that granted a particular firm or group of firms the exclusive authority to be the only legal seller of a given product.
		Barriers to entry that arise due to geographic considerations (transportation costs) or the spending decisions of the producing firms themselves (advertising, brand names, etc.) are only able to impute some additional costs to firms that want to enter a market.
	www.econlib.org /library/Columns/Teachers/marketpower.html (3605 words)

	Understanding Barriers to Entry
		Similarly, we must not equate the freedom of entry with the mere ability to enter an industry, and conclude that to the extent people are unable to enter an industry for any reason (such as the lack of the necessary capital) the freedom of entry is violated.
		My freedom of entry is no more violated by the fact that I don’t possess and cannot raise the necessary capital than my freedom of speech or press is violated because I don’t own a television station or newspaper and cannot gain the support of one.
		Now violations of the freedom of entry and the concomitant establishment of monopoly are routine consequences of the antitrust laws.
	www.mises.org /freemarket_detail.asp?control=384&sortorder=authorlast (1716 words)

	Monopoly - Barriers to Entry
		Barriers to entry are designed to block potential entrants from entering a market profitably.
		The economist Joseph Stigler defined an entry barrier as "A cost of producing (at some or every rate of output) which must be borne by a firm which seeks to enter an industry but is not borne by firms already in the industry"
		Trade restrictions such as tariffs and quotas should also be considered as a barrier to the entry of international competition in protected domestic markets.
	tutor2u.net /economics/content/topics/monopoly/barriers_to_entry.htm (541 words)

	over_impcomp (Site not responding. Last check: 2007-11-04)
		another barrier to entry, are said to exist when a firm is operating in a market where average costs decline as output increases.
		In the case of Tammy's tutoring business, entry into the tutoring business could be very expensive for a competitor as a result of Tammy's decision to computerize the tutoring operation that would raise substantially the fixed costs of a large computer server.
		Entry into university tutoring could also be more difficult if Tammy adopted a large-scale advertising operation so people all over campus knew about the service and any new entries would need to match the expensive advertising expenses.
	www.uri.edu /artsci/ecn/mead/INT1/Mic/Imperfections/over_impcomp.htm (3102 words)

	Barriers to Entry - Mises Institute
		And the primary culprits in the exclusionary process are alleged barriers to entry.
		The barriers to entry most often cited in the WorldCom and Microsoft cases, however, are another matter entirely.
		The actual "barrier" to the entry of competitors was NOT the tying of the browser and operating system per se but the fact that consumers received a quality browser for free.
	www.mises.org /fullstory.asp?control=509 (1366 words)

	OECD Glossary of Statistical Terms - Barriers to entry (Site not responding. Last check: 2007-11-04)
		Barriers to entry are factors which prevent or deter the entry of new firms into an industry even when incumbent firms are earning excess profits.
		Structural barriers to entry arise from basic industry characteristics such as technology, costs and demand.
		A narrower definition of structural barriers suggests that barriers to entry arise only when an entrant must incur costs which incumbents do not bear.
	cs3-hq.oecd.org /scripts/stats/glossary/detail.asp?ID=3149 (247 words)

	Testing the Market - Barriers to Entry
		Another important market concept to understand is barrier to entry, which can be valuable to an inventor because it protects them from competition.
		The meaning can be inferred by the title; a barrier to entry is some intellectual or physical barrier that makes it difficult or impossible for a person or company to sell a product or enter a market.
		There are many examples of these barriers; anything deterring competitors from entering the market is a barrier to entry.
	misbridge.mccombs.utexas.edu /knowledge/topics/taking_your_product_to_market/marketbarriers.asp (436 words)

	Barriers To Entry
		Barriers to entry benefit existing companies already operating in an industry because they protect an established company's revenues and profits from being whittled away by new competitors.
		Barriers to entry can exist as a result of government intervention (industry regulation, legislative limitations on new firms, special tax benefits to existing firms, etc.), or they can occur naturally within the business world.
		Some naturally occurring barriers to entry could be technological patents or patents on business processes, a strong brand identity, strong customer loyalty or high customer switching costs.
	www.investopedia.com /terms/b/barrierstoentry.asp (200 words)

	VenChar: First mover advantage and barriers to entry
		This can translate into an entry barrier because subsequent market entrants have to achieve a similar scale (by stealing market share) before they can reach the same cost points and be competitive.
		D’Aveni, however, makes the point that, in hypercompetitive markets, entry barriers are not a source of sustainable advantage (there are no sustainable advantages in a hypercompetitive market), merely a temporary one that allows the firm a limited window of time within which to capture substantial rents.
		As entry progresses, the market power of the incumbent will diminish until in a symmetric-cost situation, it enters the competitive "fringe," which, to be sure, is not a fringe any longer but the whole broadcloth.
	www.venchar.com /2004/01/first_mover_adv.html (1208 words)

	Barriers to entry
		Barriers to entry are anything that makes it difficult for a new entrant to break into a market.
		Capital costs are often a key barrier to entry in manufacturing, telecoms and other industries where the investment that needs to be made in fixed assets by a start-up makes is high relative to the sales and profits those assets will generate.
		Network effects are often a powerful barrier to entry and obviously, by their very nature, reinforce first mover advantages and create barriers to entry that get stronger with time.
	moneyterms.co.uk /barriers-to-entry (266 words)

	Barriers to Entry in Industrial Markets
		A survey of 93 firms indicates that majority of business executives consider cost advantages and capital requirements to enter markets as the two most important barriers to entry followed by incumbent's having a superior production process, capital intensity of the market, and customer loyalty.
		The least important barriers perceived by the executives in the study are government licensing requirements, followed by heavy advertising.
		In addition, the study investigates the underlying dimensions of barriers to entry in industrial market through a factor analysis.
	www.faculty.umassd.edu /fahri.karakaya/abstract/journal/indbarriers.html (133 words)

	[No title]
		In addition, there are significant barriers to entry such that new firms will find it very difficult or even impossible to enter the market.
		The existence of barriers to entry is also very important to the existence of monopoly.
		Clearly, if barriers to entry were present in a monopoly market, the seller will have a much greater degree of market power.
	cstl-hcb.semo.edu /bdomazlicky/ec101text/chap7/chap7sec1.htm (1456 words)

	Net Radio
		The Internet has lowered the barriers of entry for Netizens by serving as a cheap pipeline that the average Joe with nothing but a PC, some software and Web access could leverage to reach an audience the record industry has to spend millions to access.
		Barriers so low that high school student can create radio stations with a worldwide listenership, something out of reach for terrestrial stations due to the technical limitations of radio waves.
		This in itself is a large barrier because the number of available frequencies are finite and the FCC has already parceled out that part of the spectrum devoted to commercial radio.
	www.mp3newswire.net /stories/2002/raising.html (1791 words)

	Shirky: Weblogs and the Mass Amateurization of Publishing (Site not responding. Last check: 2007-11-04)
		By removing the barriers to publishing, weblogs ensure that the few people who earn anything from their weblogs will make their money indirectly.
		(These are barriers to entry.) And since it's most efficient to distribute those costs over the widest possible audience, big publishers will outperform little ones.
		Weblogs destroy this intrinsic value, because they are a platform for the unlimited reproduction and distribution of the written word, for a low and fixed cost.
	www.shirky.com /writings/weblogs_publishing.html (1059 words)

	New DRM Coalition to Raise Barriers to Entry for Competitors. The Importance of...:
		Whatever barriers to entry exist to producing content, content protection is not one of them.
		First of all, I'm not sure "barriers to entry" is a useful concept here, because that implies an existing market with some large players already in it.
		In any event, even if there were such restrictions, they would be a barrier to everyone, not just to new entrants, which is what "barriers to entry" usually refers to.
	www.corante.com /importance/archives/2004/07/14/new_drm_coalition_to_raise_barriers_to_entry_for_competitors.php (2426 words)

	Barriers to entry. (Site not responding. Last check: 2007-11-04)
		Home: Business and Management Studies: Barriers to entry.
		Barriers to entry ================= Jon Eastwood 1) A barrier to entry is a factor, which dependant on the magnitude of its effect upon a start-up business makes it difficult or impossible to enter a marketplace.
		For example, high start up costs is a barrier to entry as it prevents anyone with low capital from entering...
	www.studentcentral.co.uk /barriers_entry_7468 (190 words)

	Market Topology
		Barriers to entry and exit are partly technological and partly socio-political.
		Thus from the perspective of the market as a whole, entry to the market should be selective — perhaps possible for strong companies (where strong means enterprising, well-resourced, and well-connected, among other things), and impossible for weak companies.
		Barrier to entry now transforms into unlevel playing field — a home advantage, if you like.
	www.users.globalnet.co.uk /~rxv/cbb/markettopology.htm (735 words)

	iMedia Connection: Usability Studies 101: Barriers to Entry
		Barriers to entry are tests to your audience, whether you mean them to be or not.
		Remove the barriers to entry -- make your material easy to understand and accessible -- and you've given them a reason to trust you and come back to you.
		He'll be talking about Barriers to Entry, Turning Tourists into Lo-cals and other Usability topics at the Chicago AD:TECH in July '05.
	www.imediaconnection.com /content/6046.asp (1287 words)

	NCPA - Daily Policy Digest - Barriers to Entry Stifle Investment
		According to the report, there is a significant positive impact of deregulation on investment in the transport, communications, and utility industries, even when controlling for sector or country-specific shocks.
		Barriers to entry are the most harmful type of regulation, say the authors.
		A reduction in entry barriers leads to a reduction in the markup of prices over cost, and makes it easier for capital expansions.
	www.ncpa.org /iss/reg/2003/pd121103c.html (356 words)

	tecosystems: It's All About Barriers to Entry
		Poor Documentation: This may be the most common barrier to entry that I see, but it's also the most easily remedied.
		It occurs when potential participants to a given project are scared off not by technical complexity, but an inability to find an accessible entry point in the form of documentation written with an eye towards the newcomer.
		So one way to attack that problem is by removing the barrier of entry not to consuming documentation, but to producing it.
	www.redmonk.com /sogrady/archives/000954.html (1155 words)

	EconPapers: Economic reforms and entry barriers in Indian manufacturing
		As most of these regulations have given way for market signals an increase in the number of entrants and alterations in the conditions of entry, mainly the barriers to entry are expected.
		In this paper I attempt to analyse the extent of barriers to entry in Indian manufacturing by empirically quantifying the height of these barriers.
		Econometric estimation of the height of the barriers for 1991 and 1996 shows that the height of barriers increased in 1996 at the aggregate level.
	econpapers.repec.org /paper/indcdswpp/331.htm (325 words)

	Testimony, 5/13/97, THE BENEFITS OF DEREGULATION AND BARRIERS TO MARKET ENTRY
		And this inaction in spite of one decision by the U.S. Court of Appeals for the District of Columbia Circuit chastising DOT for its inaction and another by the same court finding that a Department decision rejecting employee petitions was arbitrary and capricious in all material respects.
		As I begin to address the second topic for today - barriers to entry - I believe it is important to reflect on national labor policy as it has been established by Congress.
		As the GAO noted in its October, 1996 report on barriers to entry, earlier efforts to place slots in the hands of new entrants and smaller incumbents have been disappointing because many of those carriers either went out of business or merged with established ca rriers.
	cf.alpa.org /internet/tm/tm051397.htm (1315 words)

	SurfWax: News, Reviews and Articles On Barriers To Entry
		In addition, barriers to entry in the mining industry are high and demand is strong in China and India, which bodes well for Phelps Dodge, Pendergast added.
		The weight of yesterday s fines was exacerbated by the length of the collusion and the barriers to entry in the mobile phone market, where new operators are required to obtain a licence.
		But the barriers to entry are high, as Lehman learned when its recent aggressive push to fund a broadcasting deal prompted an outcry from Japan's politicians and news media.
	economics.surfwax.com /files/Barriers_To_Entry.html (4590 words)

	SSRN-Barriers to Entry: A Market Lock-In Model of Discrimination by Daria Roithmayr
		For example, to gain access to the legal profession network, law schools have had to adopt admissions criteria that rely on the Law School Admissions Test ("LSAT"), which at least in its earlier incarnations was designed to exclude applicants of color.
		Thus, over time, the LSAT standard has become progressively more embedded into the network, creating significant barriers to entry for people of color whose cultural performances do not conform to the standard.
		At the turn of the century, whites intentionally excluded people of color from participating in the establishment of the defacto standard in law school admissions and the legal profession.
	papers.ssrn.com /sol3/papers.cfm?abstract_id=256740 (602 words)

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