Does Envelopment Through Data Advantage Call for New Regulation?

35 Pages Posted: 16 Mar 2021

Date Written: 2021

Abstract

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: https://ssrn.com/abstract=3805458

Gregor Langus (Contact Author)

ECA Economics GmbH ( email )

Avenue Louise 500
Brussels
Belgium

Vilen Lipatov

ECA Economics GmbH ( email )

Avenue Louise 500
Brussels
Belgium

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