Effects of Conferring Business Resource on Rivals

Tejaswi Channagiri Ajit and Mark A. Jamison

31st European Regional ITS Conference, Gothenburg 2022: Reining in Digital Platforms? Challenging monopolies, promoting competition and developing regulatory regimes from International Telecommunications Society (ITS)

Abstract: We examine how requiring platforms to give rivals resources, such as data, affects innovation. Using simulations in which an initial firm obtains a head start on rivals and uses that head start to build a valuable resource that subsequently gives it a competitive advantage over rivals when competing in the initial technology, we contrast scenarios in which the initial firm is or is not required by a government regulator to provide this resource to rivals. We develop pricing provisions that incentivize the initial firm to voluntarily provide the resource to rivals. We then contrast incentives to create substitutes for the initial technology.

Keywords: platforms; innovation; competition (search for similar items in EconPapers)
JEL-codes: L13 L15 L51 (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-bec, nep-com, nep-cse and nep-reg
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:itse22:265609

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