The Antitrust Analysis of Rules and Standards for Software Platforms

David Evans, Jan 30, 2015 Software platforms anchor vast global communities of users, application developers, device manufacturers, content providers, advertisers, and others. They drive innovation by enabling entrepreneurs, often anywhere in the world, to develop “applications” and to reach all the users of the platform, often anywhere in the world. These applications are sometimes the […]

Competition Policy and Regulation in Credit Card Markets: Insights from Single-sided Market Analysis

Dennis Carlton, Ralph Winter, Jan 30, 2015 This paper reexamines the economics of two common features of credit card networks: the interchange fee paid by merchant banks, or acquirers, to cardholder banks, or issuers; and the restraint commonly placed on merchants against surcharging for credit card transactions. We show that the parallels with the economics […]

Let the Right “One” Win: Policy Lessons from the New Economics of Platforms

Glen Weyl, Alexander White, Jan 30, 2015 Many of the leading controversies in competition policy in the last two decades, especially those surrounding the Microsoft case, reflect the challenges posed by platform industries. Unfortunately, too often economists and policymakers have drawn the wrong lessons when thinking about such industries. Central to our analysis is a […]

Card Surcharges and Cash Discounts: Simple Economics and Regulatory Lessons

Helene Bourguignon, Renato Gomes, Jean Tirole, Jan 30, 2015 The role of payment cards in modern economies can hardly be underrated. In 2013, debit and credit card transactions represented roughly half of all consumer payment transactions in Western Europe, and accounted for more than 45% of all payment transactions in the United States. The payment […]