In theories of competition in economics, barriers to entry, also known as barrier to entry, are obstacles that make it difficult to enter a given market. The term can refer to hindrances a firm faces in trying to enter a market or industry - such as government regulation, or a large, established firm taking advantage of economies of scale - or those an individual faces in trying to gain entrance to a profession - such as education or licensing requirements.
Because barriers to entry protect incumbent firms and restrict competition in a market, they can contribute to distortionary prices. The existence of monopolies or market power is often aided by barriers to entry.
Read more about Barriers To Entry: Definitions, Barriers To Entry For Firms Into A Market, Barriers To Entry For Individuals Into The Job Market, Classification and Examples, Barriers To Entry and Market Structure
Famous quotes containing the words barriers to, barriers and/or entry:
“The principle that human nature, in its psychological aspects, is nothing more than a product of history and given social relations removes all barriers to coercion and manipulation by the powerful.”
—Noam Chomsky (b. 1928)
“Developing the muscles of the soul demands no competitive spirit, no killer instinct, although it may erect pain barriers that the spiritual athlete must crash through.”
—Germaine Greer (b. 1939)
“All mothers need instruction, nurturing, and an understanding mentor after the birth of a baby, but in this age of fast foods, fast tracks, and fast lanes, it doesn’t always happen. While we live in a society that provides recognition for just about every life event—from baptisms to bar mitzvahs, from wedding vows to funeral rites—the entry into parenting seems to be a solo flight, with nothing and no one to mark formally the new mom’s entry into motherhood.”
—Sally Placksin (20th century)