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Digital Data, Platforms and the Usual [Antitrust] Suspects: Network Effects, Switching Costs, Essential Facility

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  • Catherine Tucker

    (MIT Sloan School of Management)

Abstract

This paper asks whether the large amounts of digital data that are typically observed on large technology platforms—such as Google, Facebook, Uber and Amazon—typically give rise to structural conditions that would lead to antitrust concerns. In particular, I evaluate whether digital data augments or decreases concerns with regard to network effects and switching costs. I also evaluate whether data should be thought of as an ‘essential facility’.

Suggested Citation

  • Catherine Tucker, 2019. "Digital Data, Platforms and the Usual [Antitrust] Suspects: Network Effects, Switching Costs, Essential Facility," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 54(4), pages 683-694, June.
    • Handle: RePEc:kap:revind:v:54:y:2019:i:4:d:10.1007_s11151-019-09693-7
    DOI: 10.1007/s11151-019-09693-7
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    References listed on IDEAS

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    1. Amalia R. Miller & Catherine E. Tucker, 2011. "Can Health Care Information Technology Save Babies?," Journal of Political Economy, University of Chicago Press, vol. 119(2), pages 289-324.
    2. James Campbell & Avi Goldfarb & Catherine Tucker, 2015. "Privacy Regulation and Market Structure," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 24(1), pages 47-73, March.
    3. Lesley Chiou & Catherine Tucker, 2017. "Search Engines and Data Retention: Implications for Privacy and Antitrust," NBER Working Papers 23815, National Bureau of Economic Research, Inc.
    4. Reiffen, David & Kleit, Andrew N, 1990. "Terminal Railroad Revisited: Foreclosure of an Essential Facility or Simple Horizontal Monopoly?," Journal of Law and Economics, University of Chicago Press, vol. 33(2), pages 419-438, October.
    5. Patrick Bajari & Victor Chernozhukov & Ali Hortaçsu & Junichi Suzuki, 2019. "The Impact of Big Data on Firm Performance: An Empirical Investigation," AEA Papers and Proceedings, American Economic Association, vol. 109, pages 33-37, May.
    6. Miller, Amalia R. & Tucker, Catherine, 2014. "Health information exchange, system size and information silos," Journal of Health Economics, Elsevier, vol. 33(C), pages 28-42.
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    Citations

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    Cited by:

    1. Yiquan Gu & Leonardo Madio & Carlo Reggiani, 2019. "Exclusive Data, Price Manipulation and Market Leadership," CESifo Working Paper Series 7853, CESifo.
    2. Jon Frost, 2020. "The economic forces driving FinTech adoption across countries," Working Papers 663, DNB.
    3. Hemant Bhargava & Antoine Dubus & David Ronayne & Shiva Shekhar, 2024. "The Strategic Value of Data Sharing in Interdependent Markets," CESifo Working Paper Series 10963, CESifo.
    4. Schaefer, Maximilian & Sapi, Geza, 2023. "Complementarities in learning from data: Insights from general search," Information Economics and Policy, Elsevier, vol. 65(C).
    5. Min Liu & Sajid Anwar, 2024. "Analyzing horizontal integration and market efficiency in platform enterprises: A case study of exchanges," Economics and Politics, Wiley Blackwell, vol. 36(2), pages 1076-1089, July.
    6. Steffen, Nico & Wiewiorra, Lukas & Kroon, Peter, 2021. "Wettbewerb und Regulierung in der Plattform- und Datenökonomie," WIK Discussion Papers 481, WIK Wissenschaftliches Institut für Infrastruktur und Kommunikationsdienste GmbH.
    7. MARTENS Bertin, 2020. "An economic perspective on data and platform market power," JRC Working Papers on Digital Economy 2020-09, Joint Research Centre.
    8. Miller, Tracy, 2021. "Evaluating Arguments for Antitrust Action against Tech Companies," Annals of Computational Economics, George Mason University, Mercatus Center, May.
    9. Maik Hesse & Timm Teubner & Marc T. P. Adam, 2022. "In Stars We Trust – A Note on Reputation Portability Between Digital Platforms," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 64(3), pages 349-358, June.
    10. Bessen, James & Impink, Stephen Michael & Reichensperger, Lydia & Seamans, Robert, 2022. "The role of data for AI startup growth," Research Policy, Elsevier, vol. 51(5).
    11. Georgios Petropoulos & Bertin Martens & Geoffrey Parker & Marshall Van Alstyne, 2023. "Platform Competition and Information Sharing," CESifo Working Paper Series 10663, CESifo.
    12. Ding, Rong & Ko, Chiu Yu & Shen, Bo, 2022. "Partial compatibility in two-sided markets: Equilibrium and welfare analysis," Economic Modelling, Elsevier, vol. 116(C).
    13. Lee, Junmin & Kim, Keungoui & Kim, Jiyong & Hwang, Junseok, 2022. "The relationship between shared mobility and regulation in South Korea: A system dynamics approach from the socio-technical transitions perspective," Technovation, Elsevier, vol. 109(C).
    14. Kevin J. Boudreau & Lars Bo Jeppesen & Milan Miric, 2022. "Competing on freemium: Digital competition with network effects," Strategic Management Journal, Wiley Blackwell, vol. 43(7), pages 1374-1401, July.
    15. Benitez, Guilherme Brittes & Ghezzi, Antonio & Frank, Alejandro G., 2023. "When technologies become Industry 4.0 platforms: Defining the role of digital technologies through a boundary-spanning perspective," International Journal of Production Economics, Elsevier, vol. 260(C).

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