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What is a barrier to entry?

McAfee, R. Preston and Mialon, Hugo M. and Williams, Michael A. (2004) What is a barrier to entry? American Economic Review, 94 (2). pp. 461-465. ISSN 0002-8282. doi:10.1257/0002828041302235.

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The present article is an attempt to resolve the controversies concerning the concept of barriers to entry. We begin by contrasting the definitions of an entry barrier proposed in the economics literature. We then introduce a classification system to clear up the existing confusion, and we employ it to assess the nature of the barriers posed by scale economies and sunk costs.

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Additional Information:Copyright © American Economic Association 2008. We thank Sue Mialon for valuable comments.
Issue or Number:2
Record Number:CaltechAUTHORS:MCAaer04
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Usage Policy:No commercial reproduction, distribution, display or performance rights in this work are provided.
ID Code:11284
Deposited By: Lindsay Cleary
Deposited On:30 Jul 2008 16:37
Last Modified:08 Nov 2021 21:57

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