 Are digital platforms bound to decay? An economic examination of the “enshittification” thesisPaul Belleflamme
No 3342, LIDAM Reprints CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) Abstract: In this article, I critically evaluate Cory Doctorow’s “enshittification” thesis, which posits that digital platforms inevitably decline in quality as they mature, increasingly extracting value from users until they ultimately collapse. Drawing on economic theory and empirical evidence, I explore the mechanisms that may drive this potential decline. My analysis supports certain aspects of the thesis but challenges others. On the one hand, it is generally acknowledged that platforms tend to favor different user groups at various stages of their evolution, and that dominant positions often emerge, which can lead to strategic abuses of market power. On the other hand, being dominant does not necessarily doom a platform to failure, as many continue to thrive despite allegations of value extraction. Furthermore, platform decay can stem not only from excessive dominance but also from intense competition among rival platforms. Finally, I examine how competition policy and regulation can mitigate platform decay without undermining platforms’ capacity to create value by solving market failures. Pages: 8 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:cor:louvrp:3342 Access Statistics for this paper More papers in LIDAM Reprints CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) Voie du Roman Pays 34, 1348 Louvain-la-Neuve (Belgium). Contact information at EDIRC. |
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