Last edited by Yozshukora
Tuesday, July 21, 2020 | History

2 edition of Brand proliferation as a barrier to entry. found in the catalog.

Brand proliferation as a barrier to entry.

Bruce R. Lyons

Brand proliferation as a barrier to entry.

by Bruce R. Lyons

  • 353 Want to read
  • 2 Currently reading

Published by Economics Research Centre, University of East Anglia in Norwich .
Written in English


Edition Notes

SeriesDiscussion paper -- no.13
ID Numbers
Open LibraryOL13846519M

The FTC argued that a combination of brand proliferation and high market concentration created insurmountable entry barriers. Its proposed remedy was the . In theories of competition in economics, a barrier to entry, or an economic barrier to entry, is a fixed cost that must be incurred by a new entrant, regardless of production or sales activities, into a market that incumbents do not have or have not had to incur.. Because barriers to entry protect incumbent firms and restrict competition in a market, they can contribute to distortionary prices.

  Industry-specific reputation barriers. The reputation barriers that Japanese investors face in the US vary across industries. They tend to face higher entry barriers in industries where incumbent firms spend more on advertising, command a higher reputation premium over foreign entrants, or sell a larger portion of output to individual end-users (vs. business customers). Examples of barriers to entry are sunk costs; initial capital investment and various other forms that may affect the brand- such as brand proliferation. However, the affect of barriers to entry on the revenue is minimal in the short term and only in the long run does the barrier to entry take full effect or the lack of barrier to entry take 3/5(2).

Most significantly, entry barriers may retard, dampen, or nullify the markets usual mechanism for checking market power: the attraction and arrival of new competitors. If a merger will substantially increase concentration to the point where a competition agency is concerned about anticompetitive effects, for example, entry barriers matter.   In industries where products are differentiated, advertising, brand proliferation, and reputations may be important sources of entry barriers. "Although Schmalensee (), for instance, argues that if one carries Stigler to the extreme, a patent would not be viewed as a barrier to entry.


Share this book
You might also like
RCP MRCP Masterclass

RCP MRCP Masterclass

My mission to Russia, and other diplomatic memories.

My mission to Russia, and other diplomatic memories.

The dissolution of this world by fire

The dissolution of this world by fire

Sedimentation as a measure of wheat quality, 1963 crop

Sedimentation as a measure of wheat quality, 1963 crop

decade of electric power conservation in the Pacific Northwest

decade of electric power conservation in the Pacific Northwest

Destined for the Palace (Understanding Gods Seasons In Your Life)

Destined for the Palace (Understanding Gods Seasons In Your Life)

The Migraine Hotel

The Migraine Hotel

On the move

On the move

AIDS sourcebook

AIDS sourcebook

Sixty-five plus in Pennsylvania

Sixty-five plus in Pennsylvania

Leipsic edition of the life and letters of Lord Macaulay

Leipsic edition of the life and letters of Lord Macaulay

Brand proliferation as a barrier to entry by Bruce R. Lyons Download PDF EPUB FB2

Brand proliferation is a business malady that afflicts certain kinds of entities, particularly global corporations, conglomerates and holding companies. It usually occurs as a consequence of healthy growth until the condition metastasizes in the corporate body, either through benign neglect or misguided thinking.

From a wider public interest perspective, brand proliferation is sometimes considered objectionable by the COMPETITION POLICY authorities, because, while ostensibly serving to increase consumer choice, the ‘saturation’ of a market by established firms' brands may result in ‘excessive’ advertising and act as a BARRIER TO ENTRY to new firms.

inverted U, which itself is moderated by the extent of brand name sharing among incumbent products. Product proliferation and its relationship to entry barriers have captured the attention of managers and researchers alike.

Also referred to as brand proliferation (Schmalensee, ), product variety (Ramdas, ), product line. Question: Question 4 (20 Marks) How Oligopolist Create Entry Barriers Using Predatory Pricing And Brand Proliferation As An Entry Barrier Inorder To Earn Profits In. Question: Ao Entry Barriers Using Predatory Pricing And Brand Proliferation As An Entry Barrier Inorder To Eam Profits In The Long Run.

Explain With Examples. Answer: Question 5 (15 Marks) Externalities Lead To Misallocation Of Resources And Cause Production Or Consumption To Fall Short Of An Optimum Level. a model which shows how a proliferation of brands can lead to a significant entry barrier.

1 Bundling Inyou studied bundling as a way of capturing consumer surplus. (If you were only semi-conscious at the time and don’t remember any of this, you might want to go back to Pindyck and Rubinfeld, Microeconomics, Chap for a review.).

Types of Entry Barrier (1)• (1) Structural barriers – Economies of scale (consider a natural monopoly) – Vertical integration (backwards and forwards) – Control of important technologies / commodities – Expertise and reputation of the incumbent – Brand loyalty and brand proliferation – Inherent suspicion among consumers about new.

Brand proliferation creates a barrier to entry by. natural barriers to entry (b) barrier created by existing firms (c) barriers created by government policy (d) economies of scale.

Which of the following is a good description of an oligopoly. a few large firms. Entry barriers exist when costs are higher for an entrant than for the incumbent firms. o Product differentiation through brand proliferation (i.e.

investment in developing new products and spending on marketing and advertising to reinforce consumer / brand loyalty).

Barriers to Entry Explained in One Minute: Definition, Examples and Monopoly/Competition Concerns - Duration: One Minute Economics 4, views. In book: Wiley Encyclopedia of Management 3rd ed Edition: 3rd, Chapter: Barriers to entry and exit, Publisher: John Wiley & Sons, Editors: JJohn McGee & Tanta Sammut Bonnici, pp.3 Cite.

model, we show that corruption (a) is ranked as the most important barrier to entry (above. finance, taxes and regulation) and (b) while bribes’ unavoidability is positively related to firm.

Moreover, (fewer) generalists may be preoccupied with market defense and more likely to build market entry barriers through excessive product/brand proliferation (Mainkar, Lubatkin, and Schulze.

Product proliferation occurs when organizations market many variations of the same can be done through different colour combinations, product sizes and different product uses.

This produces diversity for the firm as it is able to capture its sizable portion of the market. However, it can also be considered that marketing so many new products leads to economic resources being.

In a section headed "Brand Proliferation, Product Differentiation and through intensive advertising result in high barriers to entry into the RTE cereal market." The trial stemming from this complaint began in April, Complaint counsel concluded the case-in.

This is an awesome question. Brand proliferation occurs when a company creates and markets new products and line extensions that are slight variations of the same product.

It's differntiating for the sake of differntiating and not based on a mea. Question: Question 4 (15 Marks) How Oligopolist Create Entry Barriers Using Predatory Pricing And Brand Proliferation As An Entry Barrier Inorder To Eam Profits In The Long Run.

Explain With Examples. Answer: Question 5 (15 Marks) Externalities Lead To Misallocation Of Resources And Cause Production Or Consumption To Falls Optimum Level Which Is The Cause Of. We draw on industrial-organization economics theory, density-dependent and resource-partitioning theories, and brand-leveraging theories to propose a product-level theory of market entry.

The result is a more fully informed account of the relationship between the firm and its ability to shape its market environment. Our core thesis is that the relationship between product proliferation and new. Corruption sands and greases in tandem: it helps incumbent firms (on balance) and it hurts potential entrants.

We put forward a model in which a bureaucrat chooses entry barriers to optimize bribe revenues. When the capacity to collect bribes is high, it is optimal to allow high levels of oligopoly power to incumbents. How Much of Barrier to Entry is Occupational Licensing.

Peter Q. Blair, Bobby W. Chung. NBER Working Paper No. Issued in NovemberRevised in December NBER Program(s):Labor Studies. We exploit state variation in licensing laws to study the effect of licensing on occupational choice using a boundary discontinuity design.

Conclusion. Barriers to entry generally operate on the principle of asymmetry, where different firms have different strategies, assets, capabilities, access, etc. Barriers become dysfunctional when they are so high that incumbents can keep out virtually all competitors, giving rise to monopoly or oligopoly.Entry Simon Board Eco, Competitive Strategy 1 ’ & $ % Entry Barriers † Joe Bain’s deflnition of entry barrier { Anything that allows incumbant flrms to earn supranormal proflts without threat of entry.

† Bain suggested some barriers: { Economies of scale (e.g. flxed costs). { Absolute cost advantages. { Product difierentiation.

Product proliferation is generally caused by one or more of the following factors: 1. A firm's seeking to be all things to all people; 2. Product proliferation as part of a barrier to entry strategy; 3.

Product proliferation as a low-risk strategy to increase sales; 4. .