“Strictly speaking, a barrier to entry is a condition that makes the long-run costs of a new entrant into a market higher than the long-run costs of the existing firms in the market; a good example is a regulatory limitation on entry. The term is also used, more questionably, as a synonym for heavy start-up costs.” Richard A. Posner, Economic Analysis of Law § 10.8, at 227 (2d ed. 1977).
barrier to entry
barrier to entry. An economic factor that makes it difficult for a business to enter a market and compete with existing businesses.
