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- Title
FROM ENTRY BARRIERS TO MOBILITY BARRIERS: CONJECTURAL DECISIONS AND CONTRIVED DETERRENCE TO NEW COMPETITION.
- Authors
Caves, R. E.; Porter, M. E.
- Abstract
This article deals with a study which generalized the theory of barriers to entry into a theory of mobility barrier that takes a consistent and comprehensive view of the decision-making behavior of both nascent and going firms. By formulating the entry process as an investment decision made under uncertainty and conjectural interdependence, and by recognizing that subgroup structures of industries impede intra-industry mobility, we have sought to generalize the theory of barriers to entry into a theory of mobility barriers that takes a consistent and comprehensive view of the decision-making behavior of both nascent and going firms. This "new view" is designed primarily as a framework for empirical analysis and research in the field of industrial organization. Therefore, we have concentrated on an operational array of actions and outcomes rather than on the formal determination of equilibrium positions. The analysis yields many testable predictions about variations in going-firm entry from industry to industry, the determinants of market-share stability within industries, the possibility of entry into an industry via a series of its groups, and many other aspects of market structure, conduct, and performance.
- Subjects
DECISION making; BARRIERS to entry (Industrial organization); LABOR mobility; COMPETITION; INDUSTRIAL concentration; INVESTMENTS; BUSINESS enterprises
- Publication
Quarterly Journal of Economics, 1977, Vol 91, Issue 2, p241
- ISSN
0033-5533
- Publication type
Article
- DOI
10.2307/1885416