Download This PaperMarket Power of Digital Platforms
CRC TR 224 Discussion Paper Series 2022, final version Oxford Review of Economic Policy (OREP) 39 (2023) 34–46
20 Pages Posted: 16 Sep 2022 Last revised: 6 Jul 2023
Date Written: August 28, 2022
Abstract
Digital platforms have reshaped many product markets and play an increasingly important role in economies around the globe. Some of these platforms have become powerful players and may possess a lot of market power. Economists use a number of indicators to assess market power. In this article we discuss to which extent these indicators are helpful in the context of digital platforms. In particular, we focus on assessing entrenched market power and the role of potential competition to constrain this power. Finally, we discuss some cross-border issues of platform market power.
Keywords: market power, digital platforms, Big Tech, potential competition, Brussels effect
JEL Classification: K21, L40, L13
Suggested Citation: Suggested Citation