The Law and Economics of Markets with Digital Platforms

66 Pages Posted: 8 Apr 2020 Last revised: 18 Jun 2020

See all articles by Kaushik Basu

Kaushik Basu

Cornell University - Department of Economics; IZA Institute of Labor Economics; Brookings Institution

Aviv Caspi

Cornell University - Department of Economics

Robert C. Hockett

Cornell University - Law School

Date Written: October 16, 2019

Abstract

The arrival of the digital platform for buying and selling goods is altering the nature of markets by creating enormous economies of scale and enabling firms to reach purchasers far and wide. Further, digital platforms, especially when they are themselves profit-making firms, give rise to new regulatory challenges. This paper surveys research on the economics of digital platforms and their challenges to law and economics. Alongside, it builds simple models to characterize the nature of equilibria in oligopolistic and competitive markets that are mediated by private digital platforms. The paper closes with a discussion of regulatory options.

Keywords: Antitrust, Competition Law, Digital Economy, Digital Platforms, Platforms, Platform Economics, Platform Regulation

Suggested Citation

Basu, Kaushik and Caspi, Aviv and Hockett, Robert C., The Law and Economics of Markets with Digital Platforms (October 16, 2019). Cornell Legal Studies Research Paper No. 20-32, Available at SSRN: https://ssrn.com/abstract=3566590 or http://dx.doi.org/10.2139/ssrn.3566590

Kaushik Basu

Cornell University - Department of Economics ( email )

414 Uris Hall
Ithaca, NY 14853-7601
United States
607-255-2525 (Phone)
607-255-2818 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Brookings Institution ( email )

1775 Massachusetts Ave, NW
Washington, DC 20036
United States

Aviv Caspi

Cornell University - Department of Economics ( email )

Ithaca, NY 14850
United States

Robert C. Hockett (Contact Author)

Cornell University - Law School ( email )

Myron Taylor Hall
Cornell University
Ithaca, NY 14853-4901
United States

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