IDEAS home Printed from https://ideas.repec.org/a/taf/recjxx/v18y2022i2p328-355.html
   My bibliography  Save this article

R you being foreclosed?

Author

Listed:
  • Oliver Latham
  • Chara Tzanetaki

Abstract

We draw parallels between the pandemic and foreclosure in network industries by applying “Susceptible, Infected, Recovered” (SIR) modelling to an antitrust setting. We consider a digital service seeking to grow into an addressable market occupied by an incumbent platform. The entrant can grow organically, but amassing more users allows it to spread faster as users invite friends or generate content increasing its attractiveness. We consider the impact of the incumbent taking steps (e.g. reducing interoperability) to make the entrant “less infectious” with three main implications for antitrust policy: conduct may have large effects even if the targeted service continues to grow; conduct is most effective when applied against nascent services before they can harness netwrok effects; and conduct can have non-linear effects, with the most “viral” services continuing to grow while others are eliminated. Each result has parallels with the experience of the pandemic and implications for innovation incentives.

Suggested Citation

  • Oliver Latham & Chara Tzanetaki, 2022. "R you being foreclosed?," European Competition Journal, Taylor & Francis Journals, vol. 18(2), pages 328-355, May.
    • Handle: RePEc:taf:recjxx:v:18:y:2022:i:2:p:328-355
    DOI: 10.1080/17441056.2021.2002588
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/17441056.2021.2002588
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/17441056.2021.2002588?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:recjxx:v:18:y:2022:i:2:p:328-355. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/recj .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.