Regulation Entry Barriers
Comments discuss how regulations, often through regulatory capture and lobbying, create high barriers to entry that favor established companies and incumbents while hindering startups and new competitors.
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You're not understanding the concept of enforcement and regulation: it is supposed to be a barrier of entry.http://www.cnbc.com/id/100431660
You're forgetting the part where you start lobbying for regulations that raise the barrier for entry to new potential competitors
Unfortunately most people don't seem to understand that over regulation can end up benefitting bigger more established businesses, simply because it raises the barrier to entry.
More regulation actually increases the barrier of entry to make it even harder for new companies. Well financed established companies are well able to comply. There is a reason that FB always begs for regulation.
That's lip service so the big players can have their regulatory burden reduced. High startup costs and anticompetitive practices are the most significant mechanisms preventing new market entrants.
I think they love it to because it will be another barrier for a little small start up from entering the market. You'll need to spend so much on regulatory issues and compliance that only the biggest, established companies can have a business.
Incubents love regulation. It creates barriers of entry often times too burdensome for small and startup companies. Therefore less competition. Large financial companies (banks, insurance co etc) do this all the time.
Oops! We're in a heavily regulated space. Upside is that it keeps competition out. Your 3rd paragraph is 100% accurate IME
Regulations are fluid and often end up raising the barrier to entry often stifling the competition.
Don't forget regulatory capture that prevents any new companies from springing into existance