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Why Barriers to Entry are Barriers to Understanding

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  • Dennis W. Carlton

Abstract

This paper discusses and criticizes the usual definitions of barriers to entry. The failure of the concept of barrier to entry to incorporate a time dimension means that it is a concept that is in need of additional embellishment in order to be useful in a practical problem or for antitrust or regulatory proceedings.

Suggested Citation

  • Dennis W. Carlton, 2004. "Why Barriers to Entry are Barriers to Understanding," NBER Working Papers 10577, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:10577
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    1. Baumol, William J, 1982. "Contestable Markets: An Uprising in the Theory of Industry Structure," American Economic Review, American Economic Association, vol. 72(1), pages 1-15, March.
    2. Demsetz, Harold, 1982. "Barriers to Entry," American Economic Review, American Economic Association, vol. 72(1), pages 47-57, March.
    3. Stigler, George J., 1983. "The Organization of Industry," University of Chicago Press Economics Books, University of Chicago Press, number 9780226774329, January.
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    Cited by:

    1. Kaplow, Louis & Shapiro, Carl, 2007. "Antitrust," Handbook of Law and Economics, in: A. Mitchell Polinsky & Steven Shavell (ed.), Handbook of Law and Economics, edition 1, volume 2, chapter 15, pages 1073-1225, Elsevier.
    2. Sophia Li & Joe Mazur & Yongjoon Park & James Roberts & Andrew Sweeting & Jun Zhang, 2022. "Repositioning and market power after airline mergers," RAND Journal of Economics, RAND Corporation, vol. 53(1), pages 166-199, March.
    3. Hoang, Daniel & Ruckes, Martin, 2014. "The effects of disclosure policy on risk management incentives and market entry," Working Paper Series in Economics 65, Karlsruhe Institute of Technology (KIT), Department of Economics and Management.
    4. Xiao, Zehua & Zhao, Yitong, 2024. "Accounting conservatism as a strategy to deter entry: Evidence from China's Negative List System," International Review of Financial Analysis, Elsevier, vol. 93(C).
    5. Laura Ferrari Bravo & Paolo Siciliani, 2007. "Exclusionary Pricing And Consumers Harm: The European Commission'S Practice In The Dsl Market," Journal of Competition Law and Economics, Oxford University Press, vol. 3(2), pages 243-279.
    6. Leventis, Stergios & Weetman, Pauline & Caramanis, Constantinos, 2011. "Agency costs and product market competition: The case of audit pricing in Greece," The British Accounting Review, Elsevier, vol. 43(2), pages 112-119.
    7. Randolph Luca Bruno & Maria Bytchkova & Saul Estrin, 2013. "Institutional Determinants of New Firm Entry in Russia: A Cross-Regional Analysis," The Review of Economics and Statistics, MIT Press, vol. 95(5), pages 1740-1749, December.
    8. Ruyun (Ivy) Feng & Michael D. Kimbrough & Sijing Wei, 2022. "The role of information transparency in the product market: an examination of the sustainability of profitability differences," Review of Accounting Studies, Springer, vol. 27(2), pages 668-705, June.
    9. Rchard Schmalensee, 2004. "Sunk Costs and Antitrust Barriers to Entry," American Economic Review, American Economic Association, vol. 94(2), pages 471-475, May.
    10. Kappes, Jan Willem & Merkert, Rico, 2013. "Barriers to entry into European aviation markets revisited: A review and analysis of managerial perceptions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 57(C), pages 58-69.
    11. Robert S. Pindyck, 2009. "Sunk Costs and Risk-Based Barriers to Entry," NBER Working Papers 14755, National Bureau of Economic Research, Inc.
    12. Cabral, Luís, 2012. "Oligopoly Dynamics," International Journal of Industrial Organization, Elsevier, vol. 30(3), pages 278-282.
    13. Federico Ciliberto & Jonathan W. Williams, 2010. "Limited Access to Airport Facilities and Market Power in the Airline Industry," Journal of Law and Economics, University of Chicago Press, vol. 53(3), pages 467-495.
    14. Braguinsky, Serguey & Rose, David C., 2009. "Competition, cooperation, and the neighboring farmer effect," Journal of Economic Behavior & Organization, Elsevier, vol. 72(1), pages 361-376, October.
    15. Estrin, Saul & Bruno, Randolph & Bytchkova, Maria, 2011. "Institutions And Entry: A Cross-Regional Analysis In Russia," CEPR Discussion Papers 8283, C.E.P.R. Discussion Papers.
    16. James G. Mulligan, 2006. "Endogenously determined Quality and Price In a Two-Sector Competitive Service Market With an Application to Down-Hill Skiing," Working Papers 06-01, University of Delaware, Department of Economics.
    17. Lambie, Neil Ross, 2009. "The role of real options analysis in the design of a greenhouse gas emissions trading scheme," 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia 47626, Australian Agricultural and Resource Economics Society.
    18. Coate Malcolm B., 2008. "Theory Meets Practice: Barriers to Entry in Merger Analysis," Review of Law & Economics, De Gruyter, vol. 4(1), pages 183-212, June.
    19. Jaap H. Abbring & Jeffrey R. Campbell, 2006. "Oligopoly dynamics with barriers to entry," Working Paper Series WP-06-29, Federal Reserve Bank of Chicago.
    20. Merkert, Rico & Hensher, David A., 2014. "Open access for railways and transaction cost economics – Management perspectives of Australia's rail companies," Research in Transportation Economics, Elsevier, vol. 48(C), pages 227-236.
    21. Keppler, Jan Horst, 2009. "Barriers to entry : abolishing the barriers to understanding," MPRA Paper 44242, University Library of Munich, Germany, revised 2009.
    22. Kotsios, Panayotis, 2010. "Regulatory Barriers to Entry in Industrial Sectors," MPRA Paper 27976, University Library of Munich, Germany.

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    More about this item

    JEL classification:

    • L0 - Industrial Organization - - General
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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