The State in the Platform Economy: A Typology of Alternative Approaches

Abstract

The rapid growth of digital platforms has had a significant impact on various sectors, prompting calls for stricter regulation and a rethink of the boundaries between public and private in the platform economy. However, many academics still analyze models of state involvement in the platform economy from a national perspective, which can result in a monolithic view of digital policy. Taking inspiration from Law and Political Economy literature, we present a typology of state involvement in the platform economy. Our typology distinguishes between direct and indirect intervention, and between democratic and technocratic control. We present four ideal types derived from our typology: platform socialism, platform developmentalism, social market platform economy, and state dataism. We discuss the characteristics, practical approaches, and limitations of each ideal type. In addition, we systematize how different values institutionalize the role of the state in the platform economy, highlighting that platforms do not have to be naturally governed by market forces. Our exposition of alternative socioeconomic configurations for the platform economy contributes to the generation of informed and nuanced digital policies.

Keywords: platform capitalism, digital platform, platform governance, digital public infrastructure, digital policy

JEL Classification: P00, P16, P48, K00, K23