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Seven deadly sins of tech?

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  • Varian, Hal R.

Abstract

There is currently a great deal of interest in online competition, particularly involving large tech firms such as Google, Apple, Facebook, Amazon, and Microsoft (a group commonly known as “GAFAM”). In this essay I examine several issues involving these firms that have often come up both in the popular press and academic discussions. The goal of this paper is to examine the facts about the alleged seven deadly sins of tech: competition, innovation, acquisitions, entry, switching costs, entry barriers, and size. I argue that when you look at the facts, it is clear that competition among tech firms is working well, and this has yielded many positive outcomes for consumers and the economy as a whole.

Suggested Citation

  • Varian, Hal R., 2021. "Seven deadly sins of tech?," Information Economics and Policy, Elsevier, vol. 54(C).
    • Handle: RePEc:eee:iepoli:v:54:y:2021:i:c:s0167624520301372
    DOI: 10.1016/j.infoecopol.2020.100893
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    Cited by:

    1. Noskova, Victoriia, 2021. "Voice assistants as gatekeepers for consumption? How information intermediaries shape competition," Ilmenau Economics Discussion Papers 161, Ilmenau University of Technology, Institute of Economics.
    2. Prado, Tiago S. & Bauer, Johannes M., 2022. "Big Tech platform acquisitions of start-ups and venture capital funding for innovation," Information Economics and Policy, Elsevier, vol. 59(C).
    3. Alexandre Chirat, 2022. "Consumer sovereignty in the digital society," EconomiX Working Papers 2022-25, University of Paris Nanterre, EconomiX.
    4. Prado, Tiago S., 2021. "Kill Zones? Effects of Big Tech Start-up Acquisitions on Innovation," 23rd ITS Biennial Conference, Online Conference / Gothenburg 2021. Digital societies and industrial transformations: Policies, markets, and technologies in a post-Covid world 238049, International Telecommunications Society (ITS).

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