B arriers to entry Entry limiting pricing Capacity barrier Economies of scope New product development
6 Barriers to entry: ◼ Entry limiting pricing ◼ Capacity barrier ◼ Economies of scope ◼ New product development
Barriers to entry: strategic deterrence Entry limiting pricing Capacity barrier Economies of scope New product development
7 Barriers to entry: strategic deterrence ◼ Entry limiting pricing ◼ Capacity barrier ◼ Economies of scope ◼ New product development
Entry limiting pricing if cost situation allows setP≤ min ac of the potential entrant
8 Entry limiting pricing if cost situation allows, set P< min LAC of the potential entrant
Capacity barrier Keep excess capacity as a threat for larger Q and lower p
9 Capacity barrier ◼Keep excess capacity as a threat for larger Q and lower P
Other barriers ■ Economies of scope (multi-product cost barrier new product development 10
10 Other barriers: ◼ Economies of scope ◼ (multi-product cost barrier) ◼ new product development