scholarly journals Innovating Big Tech firms and competition policy: favoring dynamic over static competition

Author(s):  
Nicolas Petit ◽  
David J Teece

Abstract This paper gives a fresh account of competition in the digital economy. Economic analysis in the field of industrial organization remains largely focused on a sophisticated version of the Schumpeter–Arrow debate, which is unresolved and largely irrelevant. We posit the need to look at competition anew. Static models of monopoly firms and markets in equilibrium are often used to characterize Big Tech firms’ size and scope. We suggest that this characterization is inappropriate because the growth and diversification of many digital firms lead to a situation of broad-spectrum competition that cuts across markets. Current market positions do not reflect entrenched monopoly power but are vulnerable to competitive pressure of disequilibrating forces arising from the use of data-driven operating models, astute resource orchestration, and the exercise of dynamic capabilities. A few strategic errors by management in the handling of internal transitions and/or external challenges and they could be competitively impaired. The implications of a more dynamic understanding of the competition process in the tech sector are explored. We consider how big data and entrepreneurial management impacts firm performance. We also explore the nature of different types of rents (Schumpeterian, Ricardian, and monopoly rents) and suggest a modified long-term consumer welfare standard for competition policy. We formulate preliminary tests and predictors to assess dynamic competition. Our perspective advances a policy stance that favors innovation.

Author(s):  
Richard Whish ◽  
David Bailey

This chapter provides an overview of competition law and its economic context. Section 2 describes the practices that competition laws attempt to control in order to protect the competition process. Section 3 examines the theory of competition and gives an introductory account of why the effective enforcement of competition law is thought to be beneficial for consumer welfare. Section 4 considers the expected functions of a system of competition law. Section 5 then introduces two key economic concepts, market definition and market power, that are important to a better understanding of competition policy. The chapter concludes with a table of market share figures that are significant in the application of EU and UK competition law.


2020 ◽  
Vol 30 (Supplement_5) ◽  
Author(s):  
◽  

Abstract Countries have a wide range of lifestyles, environmental exposures and different health(care) systems providing a large natural experiment to be investigated. Through pan-European comparative studies, underlying determinants of population health can be explored and provide rich new insights into the dynamics of population health and care such as the safety, quality, effectiveness and costs of interventions. Additionally, in the big data era, secondary use of data has become one of the major cornerstones of digital transformation for health systems improvement. Several countries are reviewing governance models and regulatory framework for data reuse. Precision medicine and public health intelligence share the same population-based approach, as such, aligning secondary use of data initiatives will increase cost-efficiency of the data conversion value chain by ensuring that different stakeholders needs are accounted for since the beginning. At EU level, the European Commission has been raising awareness of the need to create adequate data ecosystems for innovative use of big data for health, specially ensuring responsible development and deployment of data science and artificial intelligence technologies in the medical and public health sectors. To this end, the Joint Action on Health Information (InfAct) is setting up the Distributed Infrastructure on Population Health (DIPoH). DIPoH provides a framework for international and multi-sectoral collaborations in health information. More specifically, DIPoH facilitates the sharing of research methods, data and results through participation of countries and already existing research networks. DIPoH's efforts include harmonization and interoperability, strengthening of the research capacity in MSs and providing European and worldwide perspectives to national data. In order to be embedded in the health information landscape, DIPoH aims to interact with existing (inter)national initiatives to identify common interfaces, to avoid duplication of the work and establish a sustainable long-term health information research infrastructure. In this workshop, InfAct lays down DIPoH's core elements in coherence with national and European initiatives and actors i.e. To-Reach, eHAction, the French Health Data Hub and ECHO. Pitch presentations on DIPoH and its national nodes will set the scene. In the format of a round table, possible collaborations with existing initiatives at (inter)national level will be debated with the audience. Synergies will be sought, reflections on community needs will be made and expectations on services will be discussed. The workshop will increase the knowledge of delegates around the latest health information infrastructure and initiatives that strive for better public health and health systems in countries. The workshop also serves as a capacity building activity to promote cooperation between initiatives and actors in the field. Key messages DIPoH an infrastructure aiming to interact with existing (inter)national initiatives to identify common interfaces, avoid duplication and enable a long-term health information research infrastructure. National nodes can improve coordination, communication and cooperation between health information stakeholders in a country, potentially reducing overlap and duplication of research and field-work.


Author(s):  
Matthew T. Panhans ◽  
Reinhard Schumacher

Abstract This paper investigates the views on competition theory and policy of the American institutional economists during the first half of the 20th century. These perspectives contrasted with those of contemporary neoclassical and later mainstream economic approaches. We identify three distinct dimensions to an institutionalist perspective on competition. First, institutionalist approaches focused on describing industry details, so as to bring theory into closer contact with reality. Second, institutionalists emphasized that while competition was sometimes beneficial, it could also be disruptive. Third, institutionalists had a broad view of the objectives of competition policy that extended beyond effects on consumer welfare. Consequently, institutionalists advocated for a wide range of policies to enhance competition, including industrial self-regulation, broad stakeholder representation within corporations, and direct governmental regulations. Their experimental attitude implied that policy would always be evolving, and antitrust enforcement might be only one stage in the development toward a regime of industrial regulation.


Energy Policy ◽  
2009 ◽  
Vol 37 (12) ◽  
pp. 5399-5407 ◽  
Author(s):  
Adrien de Hauteclocque ◽  
Jean-Michel Glachant

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Benjamin P. Dean

PurposeThis inquiry aims to determine the features and mechanisms that specially enable a multiteam system (MTS) to develop ambidexterity that can deal effectively with rapid changes in dynamic environments. The MTS is an emerging organizational unit comprised of tightly integrated networks of teams that may originate from one or more firms. The inquiry also considered how an MTS can engage those features and mechanisms to maximize ambidexterity as dynamic capabilities for increased innovation and long-term adaptation under complex, volatile conditions.Design/methodology/approachThis conceptual inquiry integrates the emerging research on MTSs with theory and studies relating to ambidexterity and dynamic capabilities. This inquiry focuses on the attributes and linkages that specially characterize an MTS. It analyzes these to determine the key mechanisms and interactions enabling and engaging ambidexterity at MTS unit level.FindingsMTSs can engage powerful mechanisms for ambidexterity functioning as dynamic capabilities at meso-organizational level. The attributes and linkages that distinguish an MTS from other units enable it to deal effectively and efficiently with near-term task demands by simultaneously balancing the essential tasks of exploration and exploitation, and by being able to rapidly adapt by reconfiguring taskwork and reallocating resources as required for sustainable innovation and long-term success within a dynamic environment.Practical implicationsThis inquiry provides valuable insights for designing MTSs that are equipped with selected teams, flexible memberships, specialized skills and permeable interfaces. Autonomy for an MTS allows the unit to span internal and external organizational boundaries to gain access to new discoveries and to exchange information and material resources for increased innovation. Ambidexterity as dynamic capabilities facilitates exploitation of current resources by efficiently reconfiguring taskwork and reallocating materials for adaptation and competitive advantage.Originality/valueThis inquiry appears to represent the most integrative effort to examine the underexplored potential of MTSs for developing and engaging ambidexterity functioning as dynamic capabilities. The inquiry appears to be a first effort at articulating a concept of MTS ambidexterity distinct from organizational ambidexterity. The analysis synthesizes a systems model that guides organizational leaders and opens new opportunities for future research.


2008 ◽  
Vol 7 (4) ◽  
Author(s):  
Glen O. Robinson ◽  
Dennis L. Weisman

This paper explores the role of the essential facilities doctrine in circumscribing the scope of network sharing obligations in telecommunications. Among other things it argues that a proper application of the doctrine of essential facilities should recognize the prominence of dynamic over static efficiency in promoting consumer welfare. Regulators may be averse to recognizing these tradeoffs because unlike the behavior of prices the welfare losses from foregone innovation may be unobservable to the regulators' constituency. Moreover, an emphasis on dynamic efficiency requires the short-term regulator to take the "long view" – fostering the competitive process rather than emulating the competitive outcome.


Author(s):  
Mark A Gregory

It would be wrong to expect stability in any large and complex industry today. The Australian telecommunications industry is no exception and in the lead-up to 2017 there have been a number of government reviews and inquiries announced that are certain to add to the instability if the outcomes do not focus on the long-term interests of end users. Whilst stability may not be achievable in an industry that is dependent on rapidly changing technology, there are aspects of telecommunications competition policy that are broken and need to be fixed urgently. Now is not the time to take an axe to the telecommunications competition legislation, especially when the underlying causes of the instability are not being tackled. Mr Graham Shepherd, a leading member of the Telecommunications Association Board and the Journal Board for many years, has retired from the Telecommunications Association Board.


Sign in / Sign up

Export Citation Format

Share Document