... would face a higher average cost curve than the incumbent being longer in the market and having more experience what allows him to cut costs. The entrant is therefore not able to produce as efficiently and cheaply. This then works as disincentive to enter the market. Other examples of such barriers are cultural differences (e.g. Kosher food or Halal butchers) or geographic isolation (bus service in rural areas). Strategic or behavioural barriers arise from purposeful and deliberate actions by an incumbent. Examples for these are brand loyalty and product differentiation which are products of deliberate actions by the monopolist or the marketing strategies used to establish the product. So do people, for instance, call a vacuum cleaner "hover" even though that is a company's name and not the general term for the machine used to clean carpets. That shows how well a product's name can be absorbed and established. Another strategic ...

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