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Natural Monopolies in Digital Platform Markets

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  • Ducci,Francesco

Abstract

Competition policy debates on digital platform markets are often premised on the idea that market fragmentation and the standard forces of competition and entry may provide a potential solution to excessive concentration and market power. In this work, Francesco Ducci provides readers with a different perspective based on the theoretical lens of natural monopoly. Ducci explores this framework through the development of three case studies on horizontal search, e-commerce marketplaces, and ride-hailing platforms, investigating the strength and limit of potential (and often heterogeneous) sources of natural monopoly at play in each industry. Building on these case studies, the book then derives from the application of the natural monopoly framework general policy implications for digital industries by identifying the respective institutional flaws and shortcomings of ex ante and ex post approaches to market power as one of the central challenges in digital platform markets.

Suggested Citation

  • Ducci,Francesco, 2020. "Natural Monopolies in Digital Platform Markets," Cambridge Books, Cambridge University Press, number 9781108491143, January.
    • Handle: RePEc:cup:cbooks:9781108491143
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    Citations

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    Cited by:

    1. Snower, Dennis J. & Twomey, Paul, 2020. "Humanistic digital governance," Kiel Working Papers 2178, Kiel Institute for the World Economy (IfW Kiel).
    2. Feldman, Maryann & Guy, Frederick & Iammarino, Simona & Ioramashvili, Carolin, 2021. "Gathering round Big Tech: how the market for acquisitions reinforces regional inequalities in the US," LSE Research Online Documents on Economics 110718, London School of Economics and Political Science, LSE Library.
    3. Cordoba, Juan Carlos & He, Sicheng, 2021. "Growing like Google: Endogenous Growth with Global Network Externalities," ISU General Staff Papers 202107160700001130, Iowa State University, Department of Economics.
    4. A. A. Blokhin & R. V. Gridin, 2021. "Institutional Factors in Economic Forecasts," Studies on Russian Economic Development, Springer, vol. 32(5), pages 459-466, September.
    5. Snower, Dennis J. & Twomey, Paul, 2020. "Humanistic Digital Governance," IZA Policy Papers 169, Institute of Labor Economics (IZA).
    6. Carolin Ioramashvili & Maryann Feldman & Frederick Guy & Simona Iammarino, 2024. "Gathering round Big Tech: How the market for acquisitions concentrates the digital sector," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 17(2), pages 293-306.
    7. Michael G Jacobides & Ioannis Lianos, 2021. "Ecosystems and competition law in theory and practice [Ecosystem as structure: an actionable construct for strategy]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 30(5), pages 1199-1229.
    8. 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.
    9. Dennis J. Snower & Paul Twomey, 2020. "Humanistic Digital Governance," CESifo Working Paper Series 8792, CESifo.
    10. Snower, Dennis & Twomey, Paul, 2021. "Humanistic Digital Governance," CEPR Discussion Papers 15634, C.E.P.R. Discussion Papers.
    11. Daas, Piet & Hassink, Wolter & Klijs, Bart, 2023. "On the Validity of Using Webpage Texts to Identify the Target Population of a Survey: An Application to Detect Online Platforms," IZA Discussion Papers 15941, Institute of Labor Economics (IZA).

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