"firm" nach Englisch mit Beispielen - Kollokationen-Wörterbuch Englisch
- Because barriers to entry protect incumbent firms and restrict competition in a market, they can contribute to distortionary prices.
- Customer loyalty - Large incumbent firms may have existing customers loyal to established products.
- Keep the borders of the economy open to support free trade and maintain a high level of competitive pressure on incumbent firms.
- Access to the same level of technology (to incumbent firms and new entrants)
- When the original incumbent firm(s) respond by returning prices to levels consistent with normal profits, the new firms will exit.
- A way to achieve this is for the incumbent firm to constrain itself to produce a certain quantity whether entry occurs or not.
- Moreover according to Stigler regulation can be captured by incumbent firms to protect the market from the entry of competitors.
- For example, there are documented cases of pre-emptive patenting by incumbent firms.
- In addition, incumbent firms have actively carried out strategic moves.
- Product proliferation is often used by incumbent firms as method of entry deterrence.
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