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Monopoly Capitalism in the Digital Era

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  • Andrea Coveri
  • Claudio Cozza
  • Dario Guarascio

Abstract

The paper applies the radical view of Monopoly Capitalism to the digital platform economy. Based on the seminal ideas of Hymer and Zeitlin that led Cowling and Sugden to define the large monopolistic firm as a means to plan production from a unique centre of strategic decision-making, we attempt to develop a framework where digital platforms are conceived as an evolution of large transnational corporations. Power and control in our Monopoly Capitalism view are then meant not only in terms of market relations, but rather as levers for coordinating global production and influencing world societies. Applying this framework to the Amazon case, we highlight the key analytical dimensions to be considered: not only Amazon dominates other firms and suppliers through its diversification and a direct control of data and technology; its power is also linked to global labour fragmentation and uneven bargaining power vis-à-vis world governments, as in the Hymer and Cowling's tradition.

Suggested Citation

  • Andrea Coveri & Claudio Cozza & Dario Guarascio, 2021. "Monopoly Capitalism in the Digital Era," Working Papers in Public Economics 209, Department of Economics and Law, Sapienza University of Roma.
    • Handle: RePEc:sap:wpaper:wp209
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    Cited by:

    1. Lucrezia Fanti & Dario Guarascio & Massimo Moggi, 2022. "From Heron of Alexandria to Amazon’s Alexa: a stylized history of AI and its impact on business models, organization and work," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 49(3), pages 409-440, September.
    2. Jean-Philippe Deranty & Thomas Corbin, 2022. "Artificial Intelligence and work: a critical review of recent research from the social sciences," Papers 2204.00419, arXiv.org.

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    More about this item

    Keywords

    Monopoly Capital; Monopoly Power; Digital Platforms; Amazon; Multinational corporation;
    All these keywords.

    JEL classification:

    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • P12 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Enterprises

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