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Market Power of Digital Platforms

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  • Jens-Uwe Franck
  • Martin Peitz

Abstract

Digital platforms have reshaped many product markets and play an increasingly important role in economies around the globe. Some of these platforms have become powerful players and may possess a lot of market power. Economists use a number of indicators to assess market power. In this article we discuss to which extent these indicators are helpful in the context of digital platforms. In particular, we focus on assessing entrenched market power and the role of potential competition to constrain this power. Finally, we discuss some cross-border issues of platform market power.

Suggested Citation

  • Jens-Uwe Franck & Martin Peitz, 2022. "Market Power of Digital Platforms," CRC TR 224 Discussion Paper Series crctr224_2022_365, University of Bonn and University of Mannheim, Germany.
    • Handle: RePEc:bon:boncrc:crctr224_2022_365
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    File URL: https://www.crctr224.de/research/discussion-papers/archive/dp365
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    Cited by:

    1. Brenčič, Vera, 2024. "Terms of use and network size: Evidence from online job boards and CV banks in the U.S," Information Economics and Policy, Elsevier, vol. 67(C).

    More about this item

    Keywords

    market power; digital platforms; Big Tech; potential competition; Brussels effect;
    All these keywords.

    JEL classification:

    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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