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2 - Technological Change and Natural Monopolies in Digital Industries

Published online by Cambridge University Press:  30 June 2020

Francesco Ducci
Francesco Ducci
Affiliation:
New York University
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Summary

This chapter evaluates the applicability of the natural monopoly framework in digital platform markets. It starts by discussing the role of technological change in fostering concentrated market structures in digital industries and by evalauting the policy implications that should be derived from the economic literature on multisided platforms. On that basis, it then identifies the general conditions that may give rise to a natural monopoly platform.

Keywords

technological changeplatformsbig dataalgorithmic matchingAImarket concentrationnatural monopoliesnetwork externalitieseconomies of scalemultisided platforms
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Chapter
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Natural Monopolies in Digital Platform Markets , pp. 10 - 46
Publisher: Cambridge University Press
Print publication year: 2020

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