The Economics of Platforms: A Theory Guide for Competition Policy

TSE Digital Center Policy Papers series, No.1, 2019

41 Pages Posted: 4 Jan 2020 Last revised: 20 Jul 2020

See all articles by Bruno Jullien

Bruno Jullien

University of Toulouse 1 - Toulouse School of Economics (TSE); Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute)

Wilfried Sand‐Zantman

University of Toulouse 1 - Toulouse School of Economics (TSE)

Multiple version iconThere are 3 versions of this paper

Date Written: September 24, 2019

Abstract

We propose an analysis of platform competition based on the academic literature with
a view toward competition policy. First, we discuss to which extent competition can
emerge in digital markets and show which forms it can take. In particular, we underline
the role of dynamics, but also of platform differentiation, consumers multihoming
and beliefs to allow competition in platform markets. Second, we analyze
competition policy issues and discuss how rules designed for standard markets can
perform in two-sided markets. We show that multi-sided externalities create new
opportunities for anti-competitive conducts, often related to pricing and contractual
imperfections.

Keywords: Networks, Platforms, Markets, Competition Policy.

JEL Classification: L00, L1, L4, L12, L13, L14, K21

Suggested Citation

Jullien, Bruno and Sand‐Zantman, Wilfried, The Economics of Platforms: A Theory Guide for Competition Policy (September 24, 2019). TSE Digital Center Policy Papers series, No.1, 2019, Available at SSRN: https://ssrn.com/abstract=3502964 or http://dx.doi.org/10.2139/ssrn.3502964

Bruno Jullien (Contact Author)

University of Toulouse 1 - Toulouse School of Economics (TSE) ( email )

Place Anatole-France
Toulouse Cedex, F-31042
France

Centre for Economic Policy Research (CEPR)

London
United Kingdom

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Wilfried Sand‐Zantman

University of Toulouse 1 - Toulouse School of Economics (TSE)

Place Anatole-France
Toulouse Cedex, F-31042
France

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