Siteadmin, Check users, nsTeam1RO, nsTeam1RW, nsTeam1_talkRO, nsTeam1_talkRW, oversight, Administrators
30,650
edits
Changes
Jump to navigation
Jump to search
Line 17:
Line 17: + +
→The Anti-competitive aspect: if it takes a minimum investment of, say, a billion dollars, to have any hope of competing in the automobile industry, it does not follow at all that the automobile i
* Factors which prevent or deter the entry of new firms into an industry even when the incumbent firms are earning excess profits. There are two broad classes of barriers: structural (economic or innocent) and strategic (behavioral). Structural barriers arise from basic industry characteristics such as technology, costs and demand. Strategic barriers arise from the behavior of incumbents. [http://74.125.93.132/search?q=cache:S9yAPGOHsGEJ:www.sice.oas.org/Dictionary/CP_e.asp+anti-competitive+barriers+to+entry&cd=10&hl=en&ct=clnk&gl=us&client=firefox-a]
* Factors which prevent or deter the entry of new firms into an industry even when the incumbent firms are earning excess profits. There are two broad classes of barriers: structural (economic or innocent) and strategic (behavioral). Structural barriers arise from basic industry characteristics such as technology, costs and demand. Strategic barriers arise from the behavior of incumbents. [http://74.125.93.132/search?q=cache:S9yAPGOHsGEJ:www.sice.oas.org/Dictionary/CP_e.asp+anti-competitive+barriers+to+entry&cd=10&hl=en&ct=clnk&gl=us&client=firefox-a]
* ... 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. Thus, for example, if it takes a minimum investment of, say, a billion dollars, to have any hope of competing in the automobile industry, it does not follow at all that the automobile industry lacks freedom of entry or that my freedom of entry as an individual is violated or infringed in any way because I personally cannot raise the necessary billion. [http://mises.org/freemarket_detail.aspx?control=384]
[[Category:Economics]]
[[Category:Economics]]