The Economics of Platforms: A Theory Guide for Competition Policy

Authors :: Wilfried Sand-Zantman
Bruno Jullien
Toulouse School of Economics (TSE)
Université Toulouse 1 Capitole (UT1)
Université Fédérale Toulouse Midi-Pyrénées-Université Fédérale Toulouse Midi-Pyrénées-École des hautes études en sciences sociales (EHESS)-Centre National de la Recherche Scientifique (CNRS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE)
Source :: Information Economics and Policy, Information Economics and Policy, Elsevier, 2021, 54, pp.100880. ⟨10.1016/j.infoecopol.2020.100880⟩, Information Economics and Policy, Elsevier, 2020, ⟨10.1016/j.infoecopol.2020.100880⟩
Publication Year :: 2020
Publisher :: Elsevier BV, 2020.
Abstract: International audience; We propose an analysis of platform competition based on the academic literature with a view towards competition policy. First, we discuss to which extent competition can emerge in digital markets and show which forms it can take. In particular, we underline the role of dynamics, but also of platform differentiation, consumers multi-homing and beliefs to allow competition in platform markets. Second, we analyze competition policy issues and discuss how rules designed for standard markets can perform in two-sided markets. We show that multi-sided externalities create new opportunities for anti-competitive conducts, often related to pricing and contractual imperfections.