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Market Definition Analysis in Latin America with Applications to Internet-Based Industries

45 Pages Posted: 27 Jun 2013  

David S. Evans

Global Economics Group; University College London

Elisa V. Mariscal

Centro de Investigación y Docencia Economica (CIDE); Global Economics Group

Date Written: June 26, 2013

Abstract

There has been a surge of recent antitrust cases involving Internet-based industries around the world, including in Latin America. These types of industries present special challenges for authorities, as their analysis requires an understanding of the fast-paced, innovative, and multi-sided nature of these businesses. In this paper we present methods and techniques for market definition and power analysis which emphasize the need to focus on competitive constraints rather than structural or functional characteristics of products and services — a particularly relevant issue in Internet-based industries. We next explore whether the legal frameworks of Argentina, Brazil and Mexico can accommodate this type of analyses. Our focus then shifts to how competition takes place in Internet-based industries; we describe how firms vie for consumer attention and provide this attention to advertisers and developers using the concept of “attention rivalry”. Taking this theoretical back-ground into account we pose the question of whether the three largest Latin American economies have the tools, legal ability and expertise to undertake these types of complex analyses. We use cases to illustrate where they have done so, and review the most relevant work they have undertaken in Internet-based industries since 2000. In our view, nothing prevents competition agencies in these countries from conducting the correct economic analyses.

Keywords: attention markets, attention economy, antitrust, market defiition, internet industry, web industry online, multi-sided platforms, two-sided markets, maret power, Google, Facebook, Apple, Latin America antitrust, Argentina antitrust, Brazil antitrust, Mexico antitrust

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

Suggested Citation

Evans, David S. and Mariscal, Elisa V., Market Definition Analysis in Latin America with Applications to Internet-Based Industries (June 26, 2013). Available at SSRN: https://ssrn.com/abstract=2285400 or http://dx.doi.org/10.2139/ssrn.2285400

David S. Evans (Contact Author)

Global Economics Group ( email )

111 Devonshire St.
Suite 900
Boston, MA 02108
United States

University College London ( email )

Gower St
London WC1E OEG, WC1E 6BT
United Kingdom

Elisa V. Mariscal

Centro de Investigación y Docencia Economica (CIDE) ( email )

Mexico City
Mexico

Global Economics Group ( email )

1400 S. Dearborn, Suite 400
Chicago, IL 60603
United States

HOME PAGE: http://www.globaleconomicsgroup.com

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