scholarly journals Platform mergers and antitrust

2021 ◽  
Author(s):  
Geoffrey Parker ◽  
Georgios Petropoulos ◽  
Marshall Van Alstyne
Keyword(s):  
Network Effects ◽  
Economies Of Scale ◽  
Burden Of Proof ◽  
Merger And Acquisition ◽  
Economies Of Scope ◽  
Merger Policy ◽  
The Past ◽  
Acquisition Strategies ◽  
Scale Data ◽  
Competition Enforcement

Abstract Should internet era merger policy differ from industrial era merger policy? Platform ecosystems rely on economies of scale, data-driven economies of scope, high-quality algorithmic systems, and strong network effects that frequently promote winner-take-most markets. Their market dominance has generated competition concerns that appear difficult to assess with traditional merger policy tools. This paper examines the acquisition strategies of the five major U.S. platforms—Google, Amazon, Facebook, Apple, and Microsoft—since their inception. We discuss the main merger and acquisition theories of harm and how these operate differently than in the past. To address merger and acquisition concerns of multi-sided platforms, we develop four proposals that incorporate (i) a new ex ante regulatory framework, (ii) an update of the conditions under which the notification of mergers should be compulsory and the burden of proof should be reversed, (iii) differential regulatory priorities in investigating horizontal versus vertical acquisitions, and (iv) an update of competition enforcement tools to increase visibility into market data and trends.

scholarly journals The Impact of Consolidation and Modernisation on Banking Scale and Scope Economies

2016 ◽  
Vol 8 (5) ◽  
pp. 169 ◽  
Author(s):  
Ali Awdeh ◽  
Chawki EL-Moussawi ◽  
Wafaa Nasser
Keyword(s):  
Economies Of Scale ◽  
Banking Sector ◽  
Maximum Likelihood Method ◽  
Physical Capital ◽  
Likelihood Method ◽  
Economies Of Scope ◽  
Scope Economies ◽  
The Past ◽  
Production Factors ◽  
The Impact

Lebanese banks recorded an enormous increase in size, customers’ base, and products variety over the past two decades, which suggests the development of economies of scale and scope in the Lebanese banking sector. This study aims at testing the presence of these economies of scale and scope in the Lebanese banking sector, particularly over the period 2000-2013. The estimation of a translogarithmic cost function by the maximum likelihood method shows that the Lebanese banks are – in general – characterised by the existence of increasing economies of scale. The analysis of economies of scope also reveals a complementarity between different outputs. Finally, the analysis of price elasticities of demand for production factors shows an important substitutability between labour and physical capital.

scholarly journals Platform Business: From Resources to Relationships

2017 ◽  
Vol 9 (1) ◽  
pp. 24-29 ◽  
Author(s):  
Marshall Van Alstyne ◽  
Geoffrey Parker
Keyword(s):  
Success Factors ◽  
Network Effects ◽  
Economies Of Scale ◽  
Business Models ◽  
Supply And Demand ◽  
Resource Control ◽  
Key Success Factors ◽  
The Past ◽  
Digital World ◽  
Internet Economy

Abstract The driving force behind our internet economy is demand-side economies of scale, also known as network effects. These arise when users create value for other users and are enhanced by technologies that create efficiencies in social networking. While resource control and supply side efficiency used to be key success factors in the past, building platforms, orchestrating networks and managing relationships determine success in an increasingly digital world. Successful platforms seek to maximize the overall value of the whole system in a circular, revolving and feedback-driven process. By attracting more platform participants they are able to offer a higher value. The larger the network, the better the matches between supply and demand and the richer the data that can be used to find matches. Successful platforms put companies that use traditional business models at risk. Many companies are still highly competitive, but when platforms enter the same marketplace, the platforms usually win. Companies that fail to create platforms on their own or to integrate their business into existing platforms will be unable to compete for long.

Stock exchange industry in UAE

2015 ◽  
Vol 10 (3) ◽  
pp. 362-382 ◽  
Author(s):  
Andrea Paltrinieri
Keyword(s):  
Network Effects ◽  
Economies Of Scale ◽  
Stock Exchange ◽  
Developed Countries ◽  
Abu Dhabi ◽  
Economies Of Scope ◽  
Stock Exchanges ◽  
Fixed Costs ◽  
Content Type ◽  
Positive Effects

Purpose – The purpose of this paper is to give an overview of UAE Stock Exchange industry. In particular this paper aims to assess a potential merger between Dubai Financial Markets-Nasdaq-Dubai and Abu Dhabi Securities Exchange, evaluating risks, rewards, policy and business implications. Design/methodology/approach – The paper presents a theoretical framework and a literature review of M & As in financial sector. It then carries out a case study on a potential merger between the UAE Stock Exchanges and a discussion on the implications for the actors involved. Findings – The contraction both in market capitalization and in trading value in the three UAE Stock Exchanges caused by subprime financial crisis and market fragmentation could be a key factors in implementing a merger between them. Because of high-fixed costs and trading platform, a single consolidated stock exchange may benefit from significant economies of scale, particularly network effects, and economies of scope. Practical implications – This paper could be useful to Security and Commodity Authority, in order to support a merger between Dubai and Abu Dhabi Stock Exchange. Given that UAE capital market regulator has tried to improve efficiency in UAE stock market over the last years, a merger between UAE Stock Exchanges could have positive effects on overall efficiency. Originality/value – It is the first paper that analyze UAE Stock Exchange industry. It is the first study that focusses on a potential merger between emerging markets’ stock exchanges. It is one of the first contributions that relates stock exchanges belonging to emerging and developed countries.

The potential of entry barriers in the context of digitalization

2021 ◽  
Vol 21 (1) ◽  
pp. 128-147
Author(s):  
Aleksey Zazdravnykh
Keyword(s):  
Big Data ◽  
Market Power ◽  
Network Effects ◽  
Economies Of Scale ◽  
Digital Transformation ◽  
Entry Barriers ◽  
Barriers To Entry ◽  
Significant Growth ◽  
Digital Infrastructure ◽  
Market Operation

The article analyzes the practical aspects of the functioning of some barriers to entry in the era of digital transformation of industry markets. It is noted that under the influence of digitalization processes, both positive changes in the mechanism of market operation are recorded, as well as a number of negative circumstances that have become a serious challenge for antitrust agencies. Control of big data, initial investment in digital infrastructure, and broad technological capabilities of digital blocking of users, against the background of powerful network effects and pronounced economies of scale, carry the potential for significant growth in the market power of individual firms. The article substantiates that such trends theoretically pose a significant threat to competition, and can form new types of entry barriers. At the same time, practical arguments are presented that indicate the ambiguity of this position.

An Analysis of the Aerodynamic Characteristics of Split Flaps

1940 ◽  
Vol 44 (352) ◽  
pp. 338-349
Author(s):  
A. P. West
Keyword(s):  
Experimental Data ◽  
Aerodynamic Characteristics ◽  
Full Scale ◽  
The Other ◽  
Aircraft Industry ◽  
The Past ◽  
The Many ◽  
Lift And Drag ◽  
Scale Data

During the past few years an extensive amount of experimental data on split flaps has been made available to the aircraft industry, through the publications of aeronautical research laboratories, both in this country and abroad. In general, each publication deals with one particular aspect of the problem, and when the effect of wing flaps on the performance of an aircraft is being estimated a certain amount of difficulty may be experienced in deciding which of the many reports available gives results most readily applicable to the case being considered ; and what allowances, if any, should be made for wing taper, flap cut-out, fuselage, etc.In this report the available data has been analysed with a view to answering these questions, and presented in such a form that it may be readily applied to determine the most probable change in the aerodynamic characteristics of a wing that may be expected from the use of this type of flap.From the appendix an estimate of the accuracy of the method can be obtained, as a comparison with full-scale data is given for lift and drag, and for the other flap characteristics the original curves have been reproduced.

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