Methodologies (4) Students of io and strategic management are concerned with identifying strategies which create monopoly rents and allow firms to maintain them of particular interest is the ability of firms to engage in profitable entry deterrence. An entry barrier is a structural characteristic of a market that protects the market power of incumbents by making entry unprofitable. Profitable entry deterrence-preservation of market power and monopoly profits-by incumbents typically depends on these structural characteristics and the behavior of incumbents post-entry. Appropriate strategic choices can commit an incumbent firm to act aggressively post-entry and insure profitable entry deterrence. In essence, firms can make investments that create barriers to entry or magnify raise the importance of existing barriers to entryMethodologies (4) • Students of IO and strategic management are concerned with identifying strategies which create monopoly rents and allow firms to maintain them. Of particular interest is the ability of firms to engage in profitable entry deterrence. An entry barrier is a structural characteristic of a market that protects the market power of incumbents by making entry unprofitable. Profitable entry deterrence-preservation of market power and monopoly profits-by incumbents typically depends on these structural characteristics and the behavior of incumbents post-entry. Appropriate strategic choices can commit an incumbent firm to act aggressively post-entry and insure profitable entry deterrence. In essence, firms can make investments that create barriers to entry or magnify/raise the importance of existing barriers to entry