Factors that increase the difficulty at which new firms can enter into a market. In some cases this can prevent new firms from entering - making the market less contestable.
There are two different types of barriers to entry which can prevent new firms from entering and increasing competition.
Artificial barriers are barriers that have been set up by the incumbent firms already established in the market to ensure their market share and profits do not slip.
Natural barriers are barriers which exist because of the structure of the market or the resources available to firms in this specific market. There types of barriers normally prevent firms from entering costlessly.
