On the 18th of March, DMC Forum hosted its virtual event: “Tipping in Digital Markets: When to intervene ex-ante and what are the principles for intervention”
The workshop explored the different nature of digital markets and the role of heterogenous consumer preferences and multihoming for platform dominance, and competition and policy implications by discussing the following issues:
- Which markets are subject to tipping? What evidence do we have?
- Under what circumstances/factors is the market more likely to tip for a platform?
- Is tipping the same as entrenchment?
- When is tipping harmful to consumers?
- When is “ex ante” intervention from regulators suitable? What are the criteria for establishing when intervention is needed and for determining the scope of such intervention?
Related articles and reports mentioned during the discussion
The competition on digital platform markets in Sweden – Swedish Competition Authority (David Nordström)
Intervention triggers and underlying theories of harm – EU expert study – Massimo Motta & Martin Peitz
Crémer, J., de Montjoye, Y.-A.,, Schweitzer, H. (2019). Competition Policy for the digital era : Final report. Luxembourg: Publications Office of the European Union. ISBN: 978-92-76-01946-6
Koski H. and Tobias Kretschmer (2004), “Survey on Competing in Network Industries: Firm Strategies, Market Outcomes, and Policy Implications,” Journal of Industry, Competition and Trade, 4 (1), 5–31
Kretschmer T., Leiponen A., Schilling M. & Vasudeva G. (2020). Platform ecosystems as metaorganizations: implications for platform strategies. Strateg. Manag. J. https:// doi.org/10.1002/smj.3250. In press
Panico, C., & Cennamo, C. (2020). User preferences and strategic interactions in platform ecosystems. Strategic Management Journal
Regibeau, P. “Network Externalities and Competition Policy. Comments on Koski and Kretschmer.” Journal of Industry, Competition and Trade, 4(1), 2004, 33–9.