Συλλογές
Τίτλος Entry barriers and entry deterrence
Δημιουργός Νέστωρας, Ανδρέας
Συντελεστής Athens University of Economics and Business, Department of Economics
Γάτσιος, Κωνσταντίνος
Τύπος Text
Φυσική περιγραφή 123p.
Γλώσσα en
Περίληψη This thesis provides a survey of the theory and practice of barriers to entry. You often hear these days that the barriers to entry are dropping in industry after industry. It's easier, we're told, to get into pretty much any business today than it ever has been, thanks largely to technology. That may be true. But it's also true that some businesses are harder to get into than others, no matter what happens technologically Barriers to entry give rise to conditions particular to a given industry that create disadvantages for new competitors that are attempting to enter the market. The origin of the barriers concept is in the research custom of industrial organization economists during the post-World War II period. However, the discussion of barriers in economic literature hardly reflects consensus. Bain and Sigler’s theory include the main controversy about the definition of entry barriers. Bain defines the conditions of entry as "the extent to which, in the long run, established firms can elevate their selling prices above the minimal average costs of production and distribution ... without inducing potential entrants to enter the industry." On the other hand Stigler defines barriers "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"Much of this wok is concerned about different reasons that create entry barriers. Cost advantages that an incumbent firm may acquire over an entrant; economies of scale that a large and experienced firm may have by product expansion; product differentiation and advertising that makes the entrant difficult to compete by spending huge amount of money and a new firm cannot afford; sunk costs that cannot be recovered if a firm leaves the market; capital investment that deters potential entrants Furthermore government regulation that protects the social efficiency or bureaucracy that makes entry more difficult; switching costs as a result of the negative costs that a consumer incurs as a result of changing suppliers, brands or products.Additionally, three main behavioral types of entry deterrence are presented here. Limit pricing - the practice of a monopolist to discourage entry in a market; predatory pricing - the practice of selling a product or service at a very low price, intending to drive competitors out of the market; excess capacity - a condition that exists when monopolistic competition achieves long-run equilibrium such that production by each firm is less than minimum efficient scale.Finally we try to describe the main characteristics of legislation of the stronger economies, namely the USA and the EU researching barriers to entry and how they assign the competition matters that arise from them.
Λέξη κλειδί Entry-deterring strategies
Competition policy
Entry barriers
Ημερομηνία 31-01-2010
Άδεια χρήσης https://creativecommons.org/licenses/by/4.0/