The marginal cost of a good is not usually a relevant factor when crafting intellectual property policy. Marginal costs estimates are based on models of static efficiency, not dynamic efficiency, which is more relevant to policymakers.Profit margins on goods must be high enough to both support...

The European Commission (hereinafter “the Commission”) recently released two Inception Impact Assessments (IIA) and public consultations on a possible new competition tool and a possible ex-ante regulation of large online platforms (so-called “gatekeepers”). After the publication of many...

In recent years, several competition authorities around the world have announced majorinvestigations into potential anti-competitive behaviour by digital platforms. Not all ofthat behaviour harms downstream consumers. This has contributed to a growing ‘existentialcrisis’ at the foundation of...

Digital advertising markets are growing and attracting increased scrutiny. This paper explores four market inefficiencies that remain poorly understood: ad effect measurement, frictions between and within advertising channel members, ad blocking and ad fraud. These topics are not unique to...

This paper assesses a common view that has surfaced recently in a growing number of Government, industry and academic studies, that first claims streaming media services are likely to have adversely affected competition in media markets (both screen and music), and second recommends additional...

We analyze mixed bundling in two-sided markets where installed base effects are present and find that the pricing structure deviates from traditional bundling as well as the standard two-sided markets literature - we determine prices on both sides fall with bundling. Mixed bundling acts as a...

This study characterizes the corporate leniency policy that minimizes the frequency with which collusion occurs. Though it can be optimal to provide only partial leniency, plausible sufficient conditions are provided whereby the antitrust authority should waive all penalties for the first firm...

Price dynamics are characterized when a price-fixing cartel is concerned about creating suspicions of the presence of a cartel A dynamical extension of static models yields the counterfactual prediction that the cartel initially raises price and then gradually lowers it An alternative...

Empirical evidence suggests that many mergers do not increase profits of the participating firms and decrease welfare. Due to the globalization of markets we should take an international view on mergers and their welfare effects. This paper develops a Bertrand-model of an international...

This paper analyzes the effects of tying arrangements on market competition and social welfare in two-sided markets when economic agents can engage in multi-homing; that is, they can participate in multiple platforms in order to reap maximal network benefits. The model shows that tying induces...