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Digital Platforms' Information Concentration: From Keystone Players to Gatekeepers

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  • Frédéric Marty
  • Thierry Warin

Abstract

This article demonstrates the inner relationship between gatekeepers and their complementors and the impact of information sharing on the overall market competition intensity and the economic surplus allocation. Several competition law-based cases are grounded on the incompleteness and information asymmetry in which complementors have to make their decisions. In this article, the situation of the complementors is all the more unfavourable when their partnership with the gatekeeper is a durable one. We use a game theory-based model to explain this trajectory. The informational imperfections undermine the bargaining power of the complementors and raise the potential cost of the exit option out of the ecosystem. In this perspective, we envisage regulatory remedies as data portability as proposed by the E.U. Commission Digital Markets Act.

Suggested Citation

  • Frédéric Marty & Thierry Warin, 2020. "Digital Platforms' Information Concentration: From Keystone Players to Gatekeepers," CIRANO Working Papers 2020s-70, CIRANO.
    • Handle: RePEc:cir:cirwor:2020s-70
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    References listed on IDEAS

    as
    1. Emek Basker (ed.), 2016. "Handbook on the Economics of Retailing and Distribution," Books, Edward Elgar Publishing, number 15905.
    2. Patrice Bougette & Oliver Budzinski & Frédéric Marty, 2019. "Exploitative Abuse and Abuse of Economic Dependence: What Can We Learn From an Industrial Organization Approach?," Revue d'économie politique, Dalloz, vol. 129(2), pages 261-286.
    3. Thierry Warin & Daniel Leiter, 2012. "Homogenous goods markets: an empirical study of price dispersion on the internet," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 4(5), pages 514-529.
    4. Frédéric Marty, 2017. "Algorithmes de prix, intelligence artificielle et équilibres collusifs," Revue internationale de droit économique, De Boeck Université, vol. 0(2), pages 83-116.
    5. Frédéric Marty & Thierry Warin, 2020. "Concurrence et innovation dans les écosystèmes numériques à l’ère de l’intelligence artificielle," Post-Print halshs-02480762, HAL.
    6. Nathalie de Marcellis-Warin & Frédéric Marty & Eva Thelisson & Thierry Warin, 2020. "Artificial Intelligence and Market Manipulations: Ex-ante Evaluation in the Regulator's Arsenal," Working Papers halshs-03041690, HAL.
    7. Patrice Bougette & Frédéric Marty, 2020. "Information Exchange among Firms: The Coherence of Justice Brandeis' Regulated Competition Approach," GREDEG Working Papers 2020-56, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France, revised Feb 2021.
    8. repec:hal:spmain:info:hdl:2441/4qghag40qc8g0r254fpopgv74r is not listed on IDEAS
    9. Frédéric Marty & Thierry Warin, 2020. "Innovation in Digital Ecosystems: Challenges and Questions for Competition Policy," CIRANO Working Papers 2020s-10, CIRANO.
    10. Frédéric Marty & Julien Pillot, 2019. "Cooperation, Dependence and Eviction - How Platform-To-Business Relationships in Mobile Telephony Ecosystems Should Be Addressed in A Competition Law Perspective?," CIRANO Working Papers 2019s-01, CIRANO.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Gatekeeper; Keystone Player; Market Dominance; Innovation; Kill Zones;
    All these keywords.

    JEL classification:

    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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