Threats of retaliation by incumbents against a new entrant (e.g.threatening to make aggressive price-cuts),cannot be regarded as a source of entry barriers.

Question

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Threats of retaliation by incumbents, such as aggressive price cuts, can deter new entrants by increasing the perceived risk and cost of entering the market, thus acting as a source of entry barriers.

Threats of Retaliation by Incumbents Against a New Entrant (E