ABSTRACT OF PAPER
Title: The barriers to entry on the economic thought.
Author: Rosado Ana
The aim of this paper is to analyse those different methods which economic science has employed in order to detect and measure barriers to entry, and to explain how economic oligopoly models have developed which permit us to analyse the non-competitive behaviour of firms. The analysed period is the sixties, seventies and eighties of last century. During the sixties and seventies, the majority articles of about of barriers to entry tried to demonstrate empirically Bain’s proposals. Like him, authors classified different kinds of barriers within the industry which they are interested in. Furthermore, Bain built a worthwhile theoretical framework in order to test his own assumptions. Kahn, Williamson, Mann, Mueller and Tilton, and others who were working mainly on political and business issues found in Bain’s concept an interesting way of testing the behavior of the firms within their industry. Bain offered them an excellent tool, with data from different industries. Using this tool it should be possible to smoke out the real activities of the firms against their competitors. During the eighties, the analysis of barriers to entry took place with in the framework of game theory. Using the analytical base developed during the previous two decades new models were constructed where de most important factor was the quality of the barrier to entry. In the eighties the idea of barriers to entry was put in doubt as opposed to an alternative analysis based on the strategic behaviour of firms. Research tried to show that the behaviour of the firm was not determined by the rules of free competition.
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