Does Envelopment Through Data Advantage Call for New Regulation?

35 Pages Posted: 16 Mar 2021

See all articles by Gregor Langus

Gregor Langus

ECA Economics GmbH

Vilen Lipatov

Cornerstone Research; CESifo

Date Written: 2021


Envelopment is an effective form of market entry that facilitates competition among platforms. Nevertheless, many commentators have focused on the anticompetitive potential of envelopment, and some have argued for regulation of platforms because of that concern. These calls for regulation are not supported by robust formal analysis or comprehensive empirical evidence. We analyze a visible recent contribution by Condorelli and Padilla (2020a,b) and explain why the model that they put forward is not ripe for policy advice in relation to concerns with envelopment.

JEL Classification: K210, L130, L400

Suggested Citation

Langus, Gregor and Lipatov, Vilen, Does Envelopment Through Data Advantage Call for New Regulation? (2021). CESifo Working Paper No. 8932, Available at SSRN: or

Gregor Langus (Contact Author)

ECA Economics GmbH ( email )

Avenue Louise 500

Vilen Lipatov

Cornerstone Research ( email )

1000 El Camino Real
Menlo Park, CA 94025-4327
United States

CESifo ( email )

Poschinger Str. 5
Munich, DE-81679

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