Natural Monopolies In Digital Platform Markets PDF Download
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Author | : Francesco Ducci |
Publisher | : Cambridge University Press |
Total Pages | : 203 |
Release | : 2020-07-23 |
Genre | : Law |
ISBN | : 1108870007 |
Download Natural Monopolies in Digital Platform Markets Book in PDF, ePub and Kindle
Competition policy debates on digital platform markets are often premised on the idea that market fragmentation and the standard forces of competition and entry may provide a potential solution to excessive concentration and market power. In this work, Francesco Ducci provides readers with a different perspective based on the theoretical lens of natural monopoly. Ducci explores this framework through the development of three case studies on horizontal search, e-commerce marketplaces, and ride-hailing platforms, investigating the strength and limit of potential (and often heterogeneous) sources of natural monopoly at play in each industry. Building on these case studies, the book then derives from the application of the natural monopoly framework general policy implications for digital industries by identifying the respective institutional flaws and shortcomings of ex ante and ex post approaches to market power as one of the central challenges in digital platform markets.
Author | : Richard A. Posner |
Publisher | : Cato Institute |
Total Pages | : 131 |
Release | : 1999-04-01 |
Genre | : Political Science |
ISBN | : 1933995823 |
Download Natural Monopoly and Its Regulation Book in PDF, ePub and Kindle
Natural monopolies exist in those markets in which demand can be satisfied at lowest cost by the output of only one rather than several competing firms. Under such conditions, conventional wisdom suggests that government regulation must substitute for competition to discipline the behavior of firms. Thirty years ago a young professor named Richard Posner asked the provocative question of whether the existence of natural monopoly provides adequate justification for government intervention. His even more provocative answer was no. The evils of natural monopoly are exaggerated, the effectiveness of regulation in controlling them is highly questionable, and regulation costs a great deal. "The resources and energies of government should be directed to problems we know are substantial, that we think are traceable to government action, and that cannot be left to the private sector to work out. There are plenty of those problems, and it is doubtful that natural monopoly is among them." Thirty years after its initial publication, read the original insights of Richard Posner about the regulation of natural monopoly as well as a new preface in which Posner reflects on the deregulation of industries that has occurred since 1969 and the possibilities for more deregulation in the future."
Author | : Robert Bork |
Publisher | : |
Total Pages | : 536 |
Release | : 2021-02-22 |
Genre | : |
ISBN | : 9781736089712 |
Download The Antitrust Paradox Book in PDF, ePub and Kindle
The most important book on antitrust ever written. It shows how antitrust suits adversely affect the consumer by encouraging a costly form of protection for inefficient and uncompetitive small businesses.
Author | : Alex Moazed |
Publisher | : Macmillan |
Total Pages | : 274 |
Release | : 2016-05-31 |
Genre | : Business & Economics |
ISBN | : 1250091896 |
Download Modern Monopolies Book in PDF, ePub and Kindle
What do Google, Snapchat, Tinder, Amazon, and Uber have in common, besides soaring market share? They're platforms - a new business model that has quietly become the only game in town, creating vast fortunes for its founders while dominating everyone's daily life. A platform, by definition, creates value by facilitating an exchange between two or more interdependent groups. So, rather that making things, they simply connect people. The Internet today is awash in platforms - Facebook is responsible for nearly 25 percent of total Web visits, and the Google platform crash in 2013 took about 40 percent of Internet traffic with it. Representing the ten most trafficked sites in the U.S., platforms are also prominent over the globe; in China, they hold the top eight spots in web traffic rankings. The advent of mobile computing and its ubiquitous connectivity have forever altered how we interact with each other, melding the digital and physical worlds and blurring distinctions between "offline" and "online." These platform giants are expanding their influence from the digital world to the whole economy. Yet, few people truly grasp the radical structural shifts of the last ten years. In Modern Monopolies, Alex Moazed and Nicholas L. Johnson tell the definitive story of what has changed, what it means for businesses today, and how managers, entrepreneurs, and business owners can adapt and thrive in this new era.
Author | : Jennifer Peters |
Publisher | : Enslow Publishing, LLC |
Total Pages | : 234 |
Release | : 2018-07-15 |
Genre | : Young Adult Nonfiction |
ISBN | : 0766098494 |
Download Critical Perspectives on Digital Monopolies Book in PDF, ePub and Kindle
In our digital age, online companies such as Google and Amazon are experiencing tremendous growth. The power and influence of these digital companies was demonstrated in September 2017 when Amazon bought the popular organic grocery Whole Foods for a record 13 million dollars. Do companies such as Amazon have too much influence in the digital space? Should they be broken up to allow more competition? In this book, these questions and more are considered by a range of experts in the subject, from legal experts, to CEOs, to corporate players, and journalists.
Author | : Fouad Sabry |
Publisher | : One Billion Knowledgeable |
Total Pages | : 345 |
Release | : 2024-02-11 |
Genre | : Business & Economics |
ISBN | : |
Download Natural Monopoly Book in PDF, ePub and Kindle
What is Natural Monopoly A natural monopoly is a monopoly in an industry in which high infrastructural costs and other barriers to entry relative to the size of the market give the largest supplier in an industry, often the first supplier in a market, an overwhelming advantage over potential competitors. Specifically, an industry is a natural monopoly if the total cost of one firm, producing the total output, is lower than the total cost of two or more firms producing the entire production. In that case, it is very probable that a company (monopoly) or minimal number of companies (oligopoly) will form, providing all or most relevant products and/or services. This frequently occurs in industries where capital costs predominate, creating large economies of scale about the size of the market; examples include public utilities such as water services, electricity, telecommunications, mail, etc. Natural monopolies were recognized as potential sources of market failure as early as the 19th century; John Stuart Mill advocated government regulation to make them serve the public good. How you will benefit (I) Insights, and validations about the following topics: Chapter 1: Natural monopoly Chapter 2: Economies of scale Chapter 3: Microeconomics Chapter 4: Monopoly Chapter 5: Monopolistic competition Chapter 6: Perfect competition Chapter 7: Imperfect competition Chapter 8: Public utility Chapter 9: Economies of scope Chapter 10: X-inefficiency Chapter 11: Anti-competitive practices Chapter 12: Barriers to entry Chapter 13: Monopoly profit Chapter 14: Average cost Chapter 15: Contestable market Chapter 16: Market power Chapter 17: Free entry Chapter 18: Competition (economics) Chapter 19: Rate-of-return regulation Chapter 20: Minimum efficient scale Chapter 21: History of microeconomics (II) Answering the public top questions about natural monopoly. (III) Real world examples for the usage of natural monopoly in many fields. Who this book is for Professionals, undergraduate and graduate students, enthusiasts, hobbyists, and those who want to go beyond basic knowledge or information for any kind of Natural Monopoly.
Author | : Paul Belleflamme |
Publisher | : Cambridge University Press |
Total Pages | : 275 |
Release | : 2021-11-11 |
Genre | : Business & Economics |
ISBN | : 1108625622 |
Download The Economics of Platforms Book in PDF, ePub and Kindle
Digital platforms controlled by Alibaba, Alphabet, Amazon, Facebook, Netflix, Tencent and Uber have transformed not only the ways we do business, but also the very nature of people's everyday lives. It is of vital importance that we understand the economic principles governing how these platforms operate. This book explains the driving forces behind any platform business with a focus on network effects. The authors use short case studies and real-world applications to explain key concepts such as how platforms manage network effects and which price and non-price strategies they choose. This self-contained text is the first to offer a systematic and formalized account of what platforms are and how they operate, concisely incorporating path-breaking insights in economics over the last twenty years.
Author | : Jens-Uwe Franck |
Publisher | : Centre on Regulation in Europe asbl (CERRE) |
Total Pages | : 96 |
Release | : 2019-05-08 |
Genre | : Law |
ISBN | : |
Download Market definition and market power in the platform economy Book in PDF, ePub and Kindle
With the rise of digital platforms and the natural tendency of markets involving platforms to become concentrated, competition authorities and courts are more frequently in a position to investigate and decide merger and abuse cases that involve platforms. This report provides guidance on how to define markets and on how to assess market power when dealing with two-sided platforms. DEFINITION Competition authorities and courts are well advised to uniformly use a multi-markets approach when defining markets in the context of two-sided platforms. The multi-markets approach is the more flexible instrument compared to the competing single-market approach that defines a single market for both sides of a platform, as the former naturally accounts for different substitution possibilities by the user groups on the two sides of the platform. While one might think of conditions under which a single-market approach could be feasible, the necessary conditions are so severe that it would only be applicable under rare circumstances. To fully appreciate business activities in platform markets from a competition law point of view, and to do justice to competition law’s purpose, which is to protect consumer welfare, the legal concept of a “market” should not be interpreted as requiring a price to be paid by one party to the other. It is not sufficient to consider the activities on the “unpaid side” of the platform only indirectly by way of including them in the competition law analysis of the “paid side” of the platform. Such an approach would exclude certain activities and ensuing positive or negative effects on consumer welfare altogether from the radar of competition law. Instead, competition practice should recognize straightforwardly that there can be “markets” for products offered free of charge, i.e. without monetary consideration by those who receive the product. ASSESSMENT The application of competition law often requires an assessment of market power. Using market shares as indicators of market power, in addition to all the difficulties in standard markets, raises further issues for two-sided platforms. When calculating revenue shares, the only reasonable option is to use the sum of revenues on all sides of the platform. Then, such shares should not be interpreted as market shares as they are aggregated over two interdependent markets. Large revenue shares appear to be a meaningful indicator of market power if all undertakings under consideration serve the same sides. However, they are often not meaningful if undertakings active in the relevant markets follow different business models. Given potentially strong cross-group external effects, market shares are less apt in the context of two-sided platforms to indicate market power (or the lack of it). Barriers to entry are at the core of persistent market power and, thus, the entrenchment of incumbent platforms. They deserve careful examination by competition authorities. Barriers to entry may arise due to users’ coordination failure in the presence of network effect. On two-sided platforms, users on both sides of the market have to coordinate their expectations. Barriers to entry are more likely to be present if an industry does not attract new users and if it does not undergo major technological change. Switching costs and network effects may go hand in hand: consumer switching costs sometimes depend on the number of platform users and, in this case, barriers to entry from consumer switching costs increase with platform size. Since market power is related to barriers to entry, the absence of entry attempts may be seen as an indication of market power. However, entry threats may arise from firms offering quite different services, as long as they provide a new home for users’ attention and needs.
Author | : Kalyan Dasgupta |
Publisher | : |
Total Pages | : |
Release | : 2020 |
Genre | : |
ISBN | : |
Download The New Economics and Regulation of Digital Platforms Book in PDF, ePub and Kindle
This paper casts the economic and regulatory debate around digital platforms in a broader and more historical context. We emphasise that despite the considerable theoretical and policy-making discussion that focuses on the specific attributes of platforms-the presence of indirect network effects, economies of scale and difficulties of consumer coordination-that the challenge confronting policy-makers is an inherent tension between the desire to see "competitive" markets characterised by entry or by multiple competing firms, and other economic objectives such as efficiency and incentives to innovate. We note that similar challenges have been confronted in areas such as innovation policy and in network industries where sunk set-up costs and the resulting scale economies potentially limit the scope for efficient entry. Recent work by Weyl and White (2014; 2016) in fact emphasises the similarities between digital platforms and natural monopolies, and argues that even though unregulated platforms will not provide the socially optimal level and quality of service, any distortions created by platforms' profit-maximising behaviour are not efficiently corrected by introducing more competition. They argue that such competition is likely to inefficiently fragment platforms and reduce the level of network effects that they deliver to consumers, and propose that a natural monopoly philosophy of regulation may be more appropriate. In this paper, we focus on the historic experience of the telecommunications industry and its regulators in attempting to balance the desire to introduce competition with the natural constraints posed by the production technologies used in the industry. Telecom regulation has, at various times, had a "marketmitigating" character and at other times has had a "market-shaping" character. The former type of regulation is familiar natural monopoly regulation, which attempts to protect consumers against the consequences of a concentrated market structure, while recognising or accepting that the market structure may be difficult to change and may even have efficiency benefits. The latter type of regulation has involved regulatory efforts to affect market structure through tools such as wholesale access regulation justified by reference to "stepping stone" or "ladder of investment" theories, or vertical unbundling of incumbents. Examining the regulatory history of the US and UK we find that marketshaping intervention has had limited success in creating new entry, and that in both countries, the most important long-term driver of competition appears to be competition from new technologies, e.g., cable and mobile networks in the past and new fibre-based entrants in the present. The experience of telecoms regulation-which we plan to expand to include the experience of additional jurisdictions besides the US and the UK-suggests that the production technology of an industry remains a powerful determinant of market structure. In the case of platform industries, network effects and scale economies may limit the extent of competition in the efficient delivery of platform services. If the experience of telecoms is anything to go by, efforts to engineer more competition in the primary platform market may encounter a high chance of failure or irrelevance in the face of underlying economic forces and technological progress. There may be merit in exploring a regulatory approach that attempts to mitigate market failures that result from concentrated market structures, as proposed by Weyl and White, and competition policy may play an important role in preventing the leveraging of market power from primary platform markets to adjacent services markets. However, policies aimed at increasing direct competition to existing digital platforms may encounter difficulties similar to those encountered by market-shaping policies in telecoms regulation.
Author | : Jonas C.L. Valente |
Publisher | : BRILL |
Total Pages | : 412 |
Release | : 2021-08-30 |
Genre | : Social Science |
ISBN | : 9004466142 |
Download From Online Platforms to Digital Monopolies Book in PDF, ePub and Kindle
In From Online Platforms to Digital Monopolies: Technology, Information and Power, Jonas C L Valente discusses the rise of platforms as key players in deferments social activities, from economy to culture and politics and how they are becoming digital monopolies.