Strategic Barriers to Entry a Market as a Seed of Market Power
Journal: Quarterly Scientific Journal "Economic Herald of the Donbas" (Vol.31, No. 1)Publication Date: 2013-03-01
Authors : Gerasymenko A. G.;
Page : 123-130
Keywords : barrier to entry; free capacity; sunk costs; market power; operating activity profitability;
Abstract
Basing the analysis of strategic nature of barriers to entry, which is an ability of incumbent firm to restrict the entry of potential competitors consciously, the article investigates an interrelation between barriers to entry the market and the level of market power of incumbent firms. Ukrainian industrial data processing lets us to find out the measure of some barriers’ influence the level of operating activity profitability of incumbent firms, which is an indicator of their market power.
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