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Firm/Market Equivalency: Determinants and Effects on Industry Dynamics

23 Pages Posted: 20 Oct 2011  

Denis Lescop

Telecom Business School

Elena Lescop

Telecom Business School

Date Written: October 18, 2011

Abstract

Today's firm is a complex nexus of interactions, which it facilitates and regulates; it supports market activity by providing the participants with basic resources. Market failures form the foundation of this phenomenon; they create business opportunities that firms address through market support strategy. The concept of firm/market equivalency introduced here integrates an economics and a management strand of literature: multi-sided markets and business ecosystems & platforms. We address firm/market equivalency through concepts of interactions and gravity, i.e. density of firm's external interactions. We then apply these concepts to a case study and discuss implications of firm/market equivalency for antitrust policy.

Keywords: firm/market equivalency, multi-sided markets, platforms, gravity

JEL Classification: L10, L22

Suggested Citation

Lescop, Denis and Lescop, Elena, Firm/Market Equivalency: Determinants and Effects on Industry Dynamics (October 18, 2011). Available at SSRN: https://ssrn.com/abstract=1945776 or http://dx.doi.org/10.2139/ssrn.1945776

Denis Lescop (Contact Author)

Telecom Business School ( email )

9 rue Charles Fourier
Evry, 91011
France

Elena Lescop

Telecom Business School ( email )

9, rue Charles Fourier
√Čvry, Ile de France 91011
France

HOME PAGE: http://www.telecom-em.eu

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