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Firm-Market equivalency : determinants and effects on industry dynamics

Author

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  • Elena de Vogeleer

    (IMT-BS - DEFI - Département Droit, Economie et Finances - TEM - Télécom Ecole de Management - IMT - Institut Mines-Télécom [Paris] - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris])

  • Denis Lescop

    (IMT-BS - DEFI - Département Droit, Economie et Finances - TEM - Télécom Ecole de Management - IMT - Institut Mines-Télécom [Paris] - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris])

Abstract

Today's firm is a complex nexus of interactions, which it facilitates and regulates; it supports market activity by providing participants with basic resources. Market failures form the foundation of this phenomenon; they create business opportunities that rms address through market support strategy.This paper explores the phenomenon of concurrent double function of firm : market creation and market support, through the concept of firm/market equivalency. We define firm/market equivalency as a platform-based cohort founded on mutually beneficial cooperative interactions between platform leader and firms-satellites, that gravitate towards the platform leader, subject to certain conditions. We address firm/market equivalency through its determinants (control and governance, capitalization, and interaction type). We then apply these concepts to a case study and discuss implications of firm/market equivalency for antitrust policy.

Suggested Citation

  • Elena de Vogeleer & Denis Lescop, 2012. "Firm-Market equivalency : determinants and effects on industry dynamics," Post-Print hal-02408568, HAL.
    • Handle: RePEc:hal:journl:hal-02408568
    Note: View the original document on HAL open archive server: https://hal.science/hal-02408568v1
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    References listed on IDEAS

    as
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