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Look up "water barons" for an example of market failure due to high cost of entry.
by jandrese 2y ago
Look up "water barons" for an example of market failure due to high cost of entry.
- mike_hearn 2y agoHigh cost of entry doesn't mean a failed market, it just means it's not as competitive as one with a low cost of entry. There are definitely cases where barriers to entry become so high it's viewed as almost impossible to enter, but there are usually still ways to do so (e.g. buying an incumbent).