A Nobel-winning economist’s guide to taming tech monopolies

Posted by Quartz A Nobel-winning economist’s guide to taming tech monopolies By Allison Schrager Jean Tirole is an intellectual giant in the economics world. The Frenchman is the foremost thinker on market power and regulation, and won the Nobel prize in 2014 for his work in this area. His insights are particularly relevant today, as large […]

An Aggregative Games Approach to Merger Analysis in Multiproduct-Firm Oligopoly

Posted by EconPapers An Aggregative Games Approach to Merger Analysis in Multiproduct-Firm Oligopoly By Volker Nocke and Nicolas Schutz Using an aggregative games approach, we analyze horizontal mergers in a model of multiproduct-firm price competition with nested CES or nested logit demands. We show that the Herfindahl index provides an adequate measure of the welfare […]

Antitrust and Costless Verification: An Optimistic and a Pessimistic View of the Implications of Blockchain Technology

Posted by Social Science Research Network Antitrust and Costless Verification: An Optimistic and a Pessimistic View of the Implications of Blockchain Technology By Christian Catalini & Catherine E. Tucker  Blockchain technology allows a network of individuals, institutions or devices to coordinate economic activity on a global scale (‘internet-level consensus’) without assigning the same degree of […]

Divided court defines credit-card networks as single two-sided market, rejecting antitrust challenge to anti-steering provision

By Beth Farmer Today, the Supreme Court ruled that American Express’ anti-steering provisions do not violate the federal antitrust laws. In a 5-4 decision, Justice Clarence Thomas wrote that credit networks such as Amex provide services to cardholders and merchants in a “special type of two-sided platform known as a ‘transaction platform,’” and that this […]

Google’s and Facebook’s Dubious Bitcoin Bans

Posted by Wall Street Journal Google’s and Facebook’s Dubious Bitcoin Bans By Mark Epstein If Calvin Coolidge’s observation that “advertising is the life of trade” remains true, the new bans by Google and Facebook on cryptocurrency ads threaten the fledgling industry’s existence. Coolidge in a 1926 address hailed advertising for spurring competition, but today these two […]

Accounting for Two-Sided Business Reality Reduces False Negatives as Well as False Positives in Antitrust Decisions Involving Platform Enterprises

Accounting for Two-Sided Business Reality Reduces False Negatives as Well as False Positives in Antitrust Decisions Involving Platform Enterprises By David S. Evans (Global Economics Group) & Richard Schmalensee (Massachusetts Institute of Technology) The two-sided analysis of platform businesses isn’t pro-defendant or pro-plaintiff. By accounting for business reality and modern economics, it helps courts and […]

EU Competition Law Goals and the Digital Economy

By Ariel Ezrachi (University of Oxford) New competition dynamics in the digital economy raise questions as to the normative scope of competition enforcement. The question – ‘Is this a competition problem?’ has become common in the face of new business strategies, new forms of interaction with consumers, the accumulation of data and the use of […]

The impact of increasing competition for non-contract parcels on postal prices and efficiency decisions

Posted by EconPapers The impact of increasing competition for non-contract parcels on postal prices and efficiency decisions By Philippe De Donder, Frank Rodriguez & Soterios Soteri Letter volumes in countries with advanced postal networks have been in decline for many years and generating increasing pressure on postal universal service providers (USPs) to seek new revenue streams and increase efficiency […]

From Non-Disclosure Agreements to Trade Secrets: Antitrust Implications

Posted by Social Science Research Network From Non-Disclosure Agreements to Trade Secrets: Antitrust Implications By Aurelien Portuese (Leicester De Montfort University) Confidentiality of information is considered to be a basic business necessity in order to safeguard the business’s strengths, competitive advantage, commercial value, economic status and market position. However, a business may often need to […]

A merger that would have made crypto investing easier fails

In January, BitGo, a Silicon Valley bitcoin wallet startup, announced plans to acquire Kingdom Trust, a Kentucky company that has quietly become a leading player in a thriving market serving cryptocurrency funds. The move would have positioned BitGo to compete with a small but growing pool of players offering custodial service—in essence, storage of crypto […]