Definition
Barriers to competition encompass the economic, legal, technical, psychological, or other factors that reduce competitive rivalry below the level that would otherwise occur naturally. They include branding, advertising, patents, entry restrictions, tariffs, and quotas. Product differentiation is also a barrier to competition.
Barriers to entry include the economic, legal, psychological, technical, and other forces that limit access to markets, and hence reduce the threat of new competition.
References
- American Marketing Association, AMA Dictionary.