Wednesday, September 11, 2013

Barriers of Entry

In economics (or any field) barriers of entry describe institutional and systemic conditions preventing new firms entering a market.

There are two interesting barriers to entry of journalism: access to information and availability of dissemination.

Someone chewed me out elsewhere regarding analogies, therefore I intend to flesh this one out more.
The concept in economics concerns the ability to for new firms to enter a market. Infrastructure costs cultivate institutional malaise. This lack of momentum cannot maintain pace as consumers' tastes refine and discernment alter.
The ideal type of a free market economy affords competitors, or would bes, the marginal opportunity to squeeze in to a competitors market, and in some cases develop new ones.

While one can imagine a case in which and older and newer company coexist in a similar or the same market, modernity is no stranger to another important economic concept coined creative destruction, in which a firm or a process or an idea succumbs to a better one. Or at least one that can survive it.

This line of reasoning may be strange to follow. Economics is not a hobby for many.

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