Attention Rivalry Among Online Platforms

43 Pages Posted: 2 Jan 2013 Last revised: 20 Apr 2013

See all articles by David S. Evans

David S. Evans

Market Platform Dynamics; Berkeley Research Group, LLC

Date Written: April 12, 2013

Abstract

Many online businesses, including most of the largest platforms, seek and provide attention. These online attention rivals provide products and features to obtain the attention of consumers and sell some of that attention, through other products and services, to merchants, developers and others who value it. The multi-sided business of seeking and providing attention is fluid with rivalries crossing boundaries defined by the features of the products and services. It is also dynamic. Rivals introduce new products and services, some involving drastic innovation, frequently. Online attention rivals impose competitive constraints on each other. Product differentiation tempers the significance of these constraints in particular situations. But the relevant differentiation mainly involves aspects of the attention that is procured and sold rather than, necessarily, particular features of the products and services used for acquiring and delivering that attention. Antitrust analysis should consider these competitive constraints in evaluating market definition, market power, and the potential for anticompetitive effects. Most importantly, antitrust analysis should focus on competition for seeking and providing attention rather than the particular products and services used for securing and delivering this attention. The existence of competition among attention rivals does not imply that antitrust should reduce the vigor with which it examines mergers and exclusionary practices among these platforms. It just needs to look for problems in the right places.

Keywords: attention markets, attention economy, antitrust, market definition, internet industry, web industry, online advertising, multi-sided platforms, two-sided markets,s, market power, history of the internet, Google, Facebook, Amazon, Apple

JEL Classification: D13, D21, D22, D41, D42, D47, D85, D92, J22, K21, L00, L11, L12, L13, L22, L26, L23, L40, L41, L60

Suggested Citation

Evans, David S., Attention Rivalry Among Online Platforms (April 12, 2013). University of Chicago Institute for Law & Economics Olin Research Paper No. 627, Available at SSRN: https://ssrn.com/abstract=2195340 or http://dx.doi.org/10.2139/ssrn.2195340

David S. Evans (Contact Author)

Market Platform Dynamics ( email )

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Berkeley Research Group, LLC ( email )

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