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Complex Antitrust Harm In Platform Markets

BY | May 15, 2017

By John M. Newman Innovation yields massive welfare benefits — but it can also pave the way for novel types of anticompetitive harm. Under certain conditions, digital platforms can harness…

By John M. Newman

Innovation yields massive welfare benefits — but it can also pave the way for novel types of anticompetitive harm. Under certain conditions, digital platforms can harness the power of reputation to steer users to favored suppliers. This steering forecloses non-favored suppliers in a related, though distinct, relevant market. Where favored suppliers are able to split the resulting rents with the platform, the strategy is rational. The resulting foreclosure reduces efficiency a

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