Monday, 12 December 2011

Barriers to entry

In theories of antagonism in economics, barriers to access are obstacles that accomplish it difficult to access a accustomed market.1 The appellation can accredit to hindrances a close faces in aggravating to access a bazaar or industry - such as government regulation, or a large, accustomed close demography advantage of economies of calibration - or those an alone faces in aggravating to accretion access to a profession - such as apprenticeship or licensing requirements.

Because barriers to access assure bounden firms and bind antagonism in a market, they can accord to distortionary prices. The actuality of monopolies or bazaar ability is generally aided by barriers to entry.

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