Natural Monopolies in Digital Platform Markets

Through three case studies, this book investigates whether digital industries are naturally monopolistic and evaluates policy approaches to market power.

Francesco Ducci (Author)

9781108491143, Cambridge University Press

Hardback, published 23 July 2020

220 pages
23.5 x 15.5 x 1.6 cm, 0.45 kg

'… this compelling volume belongs in any collection encompassing digital commerce regulation or media law.' T. Brennan, Choice

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.

1. Introduction
2. Technological change and natural monopolies in digital industries
3. Horizontal search
4. E-commerce marketplaces
5. Ride-hailing platforms
6. The institutional dimension of alternative policy options
7. Conclusion
Bibliography.

Subject Areas: E-commerce: business aspects [KJE], Business & management [KJ], Economics, finance, business & management [K]