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 | | Competition law | | Basic concepts | | | | Anti-competitive practices | | | | Laws and doctrines | | United States Image File history File links Question_book-3. ...
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Antitrust redirects here. ...
Competition law history refers to attempts by governments to regulate competitive markets for goods and services, leading up to the modern competition or antitrust laws around the world today. ...
The term monopolization refers to an offense under Section 2 of the American Sherman Antitrust Act, passed in 1890. ...
In economics and business ethics, a coercive monopoly is any monopoly maintained by coercion. ...
In economics, the term natural monopoly is used to refer to two different things. ...
In economics, market power is the ability of a firm to alter the market price of a good or service. ...
In competition law, before deciding whether companies have significant market power which would justify government intervention, the test of Small but Significant and Non-transitory Increase in Price is used to define the relevant market in a consistent way. ...
In competition law the Relevant market defines the market in which one or more goods compete. ...
Merger Control refers to the procedure of reviewing mergers and acquisitions under antitrust / competition law. ...
Anti-competitive practices are business or government practices that prevent and/or reduce competition in a market. ...
Look up collusion in Wiktionary, the free dictionary. ...
For the American pop-punk band, see Cartel (band). ...
Price fixing is an agreement between business competitors to sell the same product or service at the same price. ...
Product bundling is a marketing strategy that involves offering several products for sale as one combined product. ...
Tying is the practice of making the sale of one good (the tying good) to the de facto or de jure customer conditional on the purchase of a second distinctive good (the tied good). ...
Refusal to deal is one of several anti-competitive practices forbidden in countries which have free market economies. ...
In competition law, a group boycott is a type of secondary boycott in which two or more competitors in a relevant market refuse to do business with a firm unless the firm agrees to cease doing business with an actual or potential competitor of the firms conducting the boycott. ...
Exclusive dealing refers to when a retailer or wholesaler is ‘tied’ to purchase from a supplier on the understanding that no other distributor will be appointed or receive supplies in a given area. ...
This article needs to be wikified. ...
It has been suggested that this article or section be merged with Market division. ...
Conscious parallelism is a term used in antitrust law to describe price-fixing between competitors in an oligopoly that occurs without an actual spoken agreement between the parties. ...
Predatory pricing is the practice of a dominant firm selling a product at a loss in order to drive some or all competitors out of the market, or create a barrier to entry into the market for potential new competitors. ...
Patent misuse in the United States, is an affirmative defense used in patent litigation after the defendant has been found infringed a patent. ...
Copyright misuse is an equitable defense against copyright infringement in the United States based on the unreasonable conduct of the copyright owner. ...
Europe John Sherman The Sherman Antitrust Act (Sherman Act[1], July 2, 1890, ch. ...
In the United States, the Clayton Anti-trust Act of 1914 (codified as 15 U.S.C. §§ 12-27) was enacted to remedy deficiencies in antitrust law created under the Sherman Anti-trust Act(1890) that allowed corporations to dissolve labor unions. ...
The Robinson-Patman Act of 1936 (or Anti-Price Discrimination Act, ) is a United States federal law that outlawed anticompetitive practices by producers in which chain stores were allowed to purchase goods at lower prices than other retailers. ...
The Federal Trade Commission Act of 1934 established the Federal Trade Commission, a bipartisan body of two hundred members appointed by the President of the United States for seven year terms. ...
The Merger guidelines are a set of internal rules promulgated by the Antitrust Division of the United States Department of Justice (USDOJ) in conjunction with the Federal Trade Commission. ...
The essential facilities doctrine (sometimes also referred to as the essential facility doctrine) is a particular type of claim of monopolization made under competition laws. ...
The Noerr-Pennington doctrine is a doctrine of United States antitrust law set forth by the United States Supreme Court in a pair of cases which suggested that under the First Amendment, it can not be a violation of the federal antitrust laws for competitors to lobby the government to...
The rule of reason is a doctrine developed by the United States Supreme Court in its interpretation of the Sherman Antitrust Act. ...
Australia The European Commission, established following World War II, was the first Europe wide competition authority European Community competition law is one of the areas of authority of the European Union. ...
The Irish Competition Law is the Irish body of legal rules designed to ensure fairness and freedom in the marketplace. ...
The Competition Act 1998 banned public schools from fee-fixing in the United Kingdom, which they had previously been allowed to do. ...
| | Enforcement authorities and organizations | | | | edit box | In economics and especially in the theory of competition, barriers to entry are obstacles in the path of a firm which wants to enter a given market. The Trade Practices Act 1974 is an act of the Parliament of Australia. ...
The International Competition Network is an informal, virtual network that seeks to facilitate cooperation between competition law authorities globally. ...
A competition regulator is a government agency, typically a statutory authority, which regulates competition laws, and may sometimes also regulate consumer protection laws. ...
Face-to-face trading interactions on the New York Stock Exchange trading floor. ...
Competition is the act of striving against others for the purpose of achieving gain, such as income, pride, amusement, or dominance. ...
The term company may refer to a separate legal entity, as in English law, or may simply refer to a business, as is the common use in the United States. ...
Look up Market in Wiktionary, the free dictionary. ...
The term refers to hindrances that an individual may face while trying to gain entrance into a profession or trade. It also, more commonly, refers to hindrances that a firm may face (or even a country) while trying to enter an industry or trade grouping. A profession is an occupation, vocation or career where specialized knowledge of a subject, field, or science is applied. ...
It has been suggested that Commerce be merged into this article or section. ...
For other uses, see Country (disambiguation). ...
Barriers to entry for firms into a market Barriers to entry into markets for firms include; - Investment, especially in industries with economies of scale and/or natural monopolies.
- Government regulations may make entry more difficult or impossible. In the extreme case, a government may make competition illegal and establish a statutory monopoly. Requirements for licenses and permits, for example, may raise the investment needed to enter a market.
- Predatory pricing - the practice of a dominant firm selling at a loss to make competition more difficult for new firms who cannot suffer such losses, as a large dominant firm with large lines of credit or cash reserves can. It is illegal in most places, however it is difficult to prove. See antitrust.
- Intellectual property - Patents give a firm the sole legal right to produce a product for a given period of time. Patents are intended to encourage invention and technological progress by offering this financial incentive. Similarly, trademarks and servicemarks may represent a kind entry barrier for a particular product or service if the market is dominated by one or a few well-known names.
- Economy of scale - Large, experienced firms can generally produce goods at lower costs than small, inexperienced firms. Cost advantages can sometimes be quickly reversed by advances in technology. For example, the development of personal computers has allowed small companies to make use of database and communications technology which was once extremely expensive and only available to large corporations.
- Globalisation, entry of global players into local market make entry of local players into the market difficult
- Customer loyalty - large incumbent firms may have existing customers loyal to established products. The presence of established strong Brands within a market can be a barrier to entry in this case.
- Advertising - incumbent firms can seek to make it difficult for new competitors by spending heavily on advertising that new firms would find more difficult to afford.
- Research and development - some products, such as microprocessors, require a massive upfront investment in technology which will deter potential entrants.
- Sunk costs - sunk costs cannot be recovered if a firm decides to leave a market; they therefore increase the risk and deter entry.
- Network effect - when a good or service has a value that depends on the number of existing customers, then competing players may have difficulties to enter a market where a strong player has already captured a significant user base.
- Restrictive practices, such as air transport agreements that make it difficult for new airlines to obtain landing slots at some airports.
- Distributor agreements, exclusive agreements with key distributors or retailers can make it difficult for other manufacturers to enter the industry.
- Supplier agreements, exclusive agreements with key links in the supply chain can make it difficult for other manufacturers to enter the industry.
- Inelastic demand, a strategy of selling at a lower price in order to penetrate markets is ineffective with price-insensitive consumers.
- Vertical integration, that is, a firm's coverage of more than one level of production, while pursuing practices which favor its own operations at each level, is often cited as an entry barrier
- Cost advantages independent of scale, proprietary technology, know-how, favorable access to raw materials, favorable geographic locations, learning curve cost advantages.
Invest redirects here. ...
The increase in output from Q to Q2 causes a decrease in the average cost of each unit from C to C1. ...
In economics, a natural monopoly is a persistent situation where a single company is the only supplier of a particular kind of product or service due to the fundamental cost structure of the industry. ...
Government regulation involves the use of the law, mandated by the state, to produce outcomes which might not otherwise occur, prevent outcomes which might otherwise occur, produce or prevent outcomes in different places to what might otherwise occur, or produce or prevent outcomes in different timescales than would otherwise occur. ...
A legal monopoly, statutory monopoly, or de jure monopoly is a monopoly that is protected by law from competition. ...
Predatory pricing is the practice of a dominant firm selling a product at a loss in order to drive some or all competitors out of the market, or create a barrier to entry into the market for potential new competitors. ...
This article is about anti-competitive business behavior. ...
For the 2006 film, see Intellectual Property (film). ...
For other uses, see Patent (disambiguation). ...
For the musical form, see Invention (music). ...
By the mid 20th century humans had achieved a mastery of technology sufficient to leave the surface of the Earth for the first time and explore space. ...
“(TM)†redirects here. ...
In some countries, notably the United States, a trademark used to identify a service rather than a product is called a service mark (SM). ...
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This article is about computing. ...
For the Bobby Womack album, see Communication (1972 album). ...
Globalization is a term used to describe the changes in societies and the world economy that are the result of dramatically increased trade and cultural exchange. ...
The loyalty business model is a business model used in strategic management in which company resources are employed so as to increase the loyalty of customers and other stakeholders in the expectation that corporate objectives will be met or surpassed. ...
Advert redirects here. ...
The phrase research and development (also R and D or, more often, R&D), according to the Organization of Economic Cooperation and Development, refers to creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use...
Microprocessors, including an Intel 80486DX2 and an Intel 80386 A microprocessor (abbreviated as µP or uP) is an electronic computer central processing unit (CPU) made from miniaturized transistors and other circuit elements on a single semiconductor integrated circuit (IC) (aka microchip or just chip). ...
It has been suggested that Bygones principle be merged into this article or section. ...
For the Parker Brothers board game, see Risk (game) For other uses, see Risk (disambiguation). ...
A network effect is a characteristic that causes a good or service to have a value to a potential customer which depends on the number of other customers who own the good or are users of the service. ...
A drawing of a self-service store Retailing consists of the sale of goods/merchandise for personal or household consumption either from a fixed location such as a department store or kiosk, or away from a fixed location and related subordinated services (Definition of the WTO (last page). ...
Barriers to entry for individuals into the job market Examples of barriers restricting individuals from entering a job market include educational, licensing, or quota limits on the number of people who can enter a certain profession such as that of lawyer, and educational, licensing, and experiential requirements for people who wish to be neurosurgeons. To licence or grant licence is to give permission. ...
A quota is a prescribed number or share of something. ...
For the fish called lawyer, see Burbot. ...
To licence or grant licence is to give permission. ...
Neurosurgery is the surgical discipline focused on treating the central and peripheral nervous system. ...
Whilst both types of barriers to entry attempt to guarantee that people entering those fields are suitably qualified, the barriers to entry also reduce competition. This has the effect of facilitating premium pricing for the services of regulated professions. That is, if just anyone could enter these fields, the income of the incumbents would be expected to be lower.
Classification and examples Michael Porter classifies the markets into four general cases: ...
High barrier to entry and high exit barrier - Examples: Telecommunications, Energy Telecommunication involves the transmission of signals over a distance for the purpose of communication. ...
High barrier to entry and low exit barrier - Examples: Consulting, Education For other uses, see Consultant (disambiguation). ...
Low Barrier to entry and high exit barrier - Examples: Hotels, Siderurgy A hotel is an establishment that provides lodging, usually on a short-term basis. ...
Siderurgy (from Latin sidus - star and Greek ergon - work) is a process consisting of extracting iron from iron ore by heating, first mixed with combustibles then separated in a melting pot. ...
Low barrier to entry and low exit barrier - Examples: Retail, E-commerce Drawing of a self-service store. ...
Electronic commerce, EC, e-commerce or ecommerce consists primarily of the distributing, buying, selling, marketing, and servicing of products or services over electronic systems such as the Internet and other computer networks. ...
Those markets with high entry barriers have few players and thus high profit margins. Those markets with low entry barriers have lots of players and thus low profit margins. Those markets with high exit barriers are unstable and not self-regulated, so the profit margins fluctuate very much along time. Those markets with a low exit barrier are stable and self-regulated, so the profit margins do not fluctuate along time. This article or section does not cite any references or sources. ...
This article or section does not cite any references or sources. ...
This article or section does not cite any references or sources. ...
This article or section does not cite any references or sources. ...
The higher the barriers to entry and exit the more prone a market tend to be a natural monopoly. The reverse is also true. The lower the barriers the more likely to become a perfect competition. This article is about the economic term. ...
Perfect competition is an economic model that describes a hypothetical market form in which no producer or consumer has the market power to influence prices. ...
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