nep-law New Economics Papers
on Law and Economics
Issue of 2021‒02‒08
twenty-two papers chosen by
Eve-Angeline Lambert, Université de Lorraine

  1. State Capacity, Legal Design and the Venality of Judicial Offices By Crettez, Bertrand; Deffains, Bruno; Musy, Olivier; Tallec, Ronan
  2. Outcomes of Internationally Wrongful Acts and COVID-19 Pandemic By Dr. Mesut Sohret
  3. School indiscipline and crime By Tony Beatton; Michael P. Kidd; Matteo Sandi
  4. Restrictions on Privacy and Exploitation in the Digital Economy: A Market Failure Perspective By Nicholas Economides; Ioannis Lianos
  5. Heterogeneity in criminal behaviour after child birth: the role of ethnicity By Kabir Dasgupta; André Diegmann; Tom Kirchmaier; Alexander Plum
  6. Abuse of Office By Valentina Avramescu
  7. Land consolidation cases relating to grazing arrangements By Sky, Per Kåre; Elvestad, Helén Elisabeth
  8. The Impact of Abortion Access on Violence Against Women By Caterina Muratori
  9. To change or not to change: the impact of the law on mortgage origination By Sá, Ana Isabel
  10. The Criminal Phenomenon During the Pandemic Period in Romania By Cristian Dan
  11. Exploring dissent in the Supreme Court of Argentina By Sergio Muro; Sofia Amaral-Garcia; Alejandro Chehtman; Nuno Garoupa
  12. The Market for Fake Reviews By He, Sherry; Hollenbeck, Brett; Proserpio, Davide
  13. Firearms Law and Fatal Police Shootings: A Panel Data Analysis By Marco Rogna; Diep Bich Nguyen
  14. The Size and Development of the Shadow Economy in Morocco By LAHLOU, Kamal; DOGHMI, Hicham; SCHNEIDER, Friedrich
  15. Market Definition in the Platform Economy By Jens-Uwe Franck; Martin Peitz
  16. Moral Norms and the System of Legal Norms.Legal Ethics By Cristian Dan
  17. Feminine Criminality Multilateral Analysis of the Profile By Nicoleta-Elena Heghes; Cristina-Gabriela Schiopu
  18. The Regime of Incompatibilities of Local Elected Officials and the Application of the Law in Time, from a Jurisprudential Perspective By Adina Georgeta Ponea
  19. False Deeds under Private Signature By Adriana Tulus
  20. Criminality and the Brazilian Prison System at the Beginning of the 21st Century By Cibelli Nobre S. P.; Ángel B. Espina Barrio; Ricardo Nobre H.
  21. Competition in the digital economy: An analysis of gatekeepers and regulations By Büchel, Jan; Rusche, Christian
  22. Digital platforms and antitrust By Geoffrey Parker; Georgios Petropoulos; Marshall Van Alstyne

  1. By: Crettez, Bertrand; Deffains, Bruno; Musy, Olivier; Tallec, Ronan
    Abstract: Judicial venality, i.e., the sales of public positions in the judicial sector, was used extensively in France and in Europe from the 16th to the 18th centuries. Offices were bought because judges received trial fees from litigants. Kings sold them because they needed money, at the cost of losing control of the judiciary. We develop a model of judicial venality and we rely on this model to provide an analytic narrative of the rise and the decline of judicial venality in Old Regime France. Historically, judicial venality improved French legal capacity despite limited opportunities to raise taxes and borrow. But judicial venality also sharply increased legal diversity which, in addition to lengthy and costly trials caused its final demise.
    Keywords: Venal Justice, Legal Institutions, Legal Centralization, State Capacity, French Old Regime
    JEL: H1 K0 K40 K41 N40 N43 P48
    Date: 2020–12–25
  2. By: Dr. Mesut Sohret (Gaziantep University/Faculty of Economics and Business Administration Gaziantep, Turkey)
    Abstract: It is one of the basic principles of international law that the state that makes an act contrary to international law must compensate for the damage arising from this act. Accordingly, when an international commitment has been breached, it is a principle of international law to adequately remedy it; therefore, reparation is a mandatory complement condition in the execution of a contract, without it being written in this contract. The core legal consequences for the responsible state on the commission of an internationally wrongful act are twofold: to cease the wrongful conduct and to make full reparation for the injury caused by the internationally wrongful act. Injury includes any material or moral damage, emerged as a result of an internationally wrongful act of a state. “The general principle that the legal consequences of an internationally wrongful act do not affect the continued duty of the State to perform the obligation it has breached. As a result of the internationally wrongful act, a new set of legal relations is established between the responsible State and the State or States to whom the international obligation is owed. But this does not mean that the pre-existing legal relation established by the primary obligation disappears.†“In particular, all states in such cases have obligations to cooperate to bring the breach to an end, not to recognize as lawful the situation created by the breach, and not to render aid or assistance to the responsible state in maintaining the situation so created.†This study focuses on the actual situation that emerged during the COVID-19 pandemic process by examining the issue of international tort and its consequences.
    Keywords: Internationally Wrongful Acts, COVID-19 Pandemic, State Responsibility, Cessation, Reparation, Restitution, International Compensation
    Date: 2020–12
  3. By: Tony Beatton; Michael P. Kidd; Matteo Sandi
    Abstract: This paper studies the impact of compulsory schooling on violent behaviour and victimization in school using individual-level administrative data matching education and criminal records from Queensland (Australia). Exploiting a legislative increase in the minimum dropout age in 2006, this study defines a series of regression-discontinuity specifications to show that compulsory schooling reduces crime but increases violent behaviour in school. While police records show that property and drugs offences decrease, education records indicate that violence and victimization in school increase. Thus, prior studies that fail to consider in-school behaviour may over-estimate the short-run crime-reducing impact of compulsory education.
    Keywords: youth crime, minimum dropout age, school attendance
    JEL: I2 K42
    Date: 2020–11
  4. By: Nicholas Economides (Professor of Economics, NYU Stern School of Business, New York, New York 10012); Ioannis Lianos (Professor of Global Competition Law and Public Policy, Faculty of Laws, University College London, and Hellenic Competition Commission)
    Abstract: We discuss how the acquisition of private information by default without compensation by digital platforms such as Google and Facebook creates a market failure and can be grounds for antitrust enforcement. To avoid the market failure, the default in the collection of personal information has to be changed by law to “opt-out.” This would allow the creation of a vibrant market for the sale of users’ personal information to digital platforms. Assuming that all parties are perfectly informed, users are better off in this functioning market and digital platforms are worse off compared to the default opt-in. However, just switching to a default opt-in will not restore competition to the but for world because of the immense market power and bargaining power towards an individual user that digital platforms have acquired. Digital platforms can use this power to reduce the compensation that a user would receive for his/her personal information compared to a competitive world. Additionally, it is likely that the digital platforms are much better informed than the user in this market, and can use this information to disadvantage users in the market for personal information.
    Keywords: personal information; Internet search; Google; Facebook; digital; privacy; restrictions of competition; exploitation; market failure; hold up; merger; abuse of a dominant position; unfair commercial practices; excessive data extraction; self-determination; behavioral manipulation; remedies; portability; opt-in; opt-out.
    JEL: K21 L1 L12 L4 L41 L5 L86 L88
    Date: 2020–09
  5. By: Kabir Dasgupta; André Diegmann; Tom Kirchmaier; Alexander Plum
    Abstract: This paper documents behavioral differences in parental criminality between majority and minority ethnic groups after child birth. The particular effect we exploit is that of the gender of the first-born child on fathers' convictions rates. Based on detailed judicial and demographic data from New Zealand, we first show that the previously documented inverse relationship between having a son and father's criminal behaviour holds across the average of the population. However, when splitting the fathers' sample by ethnicity, the effect appears to be entirely driven by the white part of the population and that there is no effect on the native Maori. The strong ethnic divide is observed along many dimensions and challenges the implicitly made assumption in the economics of crime literature that findings are universally applicable across cultures and race.
    Keywords: crime research, racial bias
    JEL: K42 K49 L38
    Date: 2020–12
  6. By: Valentina Avramescu (Dimitrie Cantemir Christian University of Bucharest, Romania)
    Abstract: The paper presents the topic regarding the crime of abuse of office, a crime provided by the current Criminal Code in Chap. II - Offenses service, Title V - Crimes of corruption and service. The paper presents the legal definition of this crime, its legal object, with the two aspects: special and material, the subjects of crimes and criminal participation. It also talks about the constitutive content, consisting of the objective side, the material element of the objective side, the causal link between the action or inaction provided by the legislator and the immediate consequence, the form of guilt in terms of the subjective side, and the forms, modalities, sanctions and procedural aspects of this type of crime.
    Keywords: abuse of office; legitimate interest; civil servant; injury; defective act
    Date: 2020–11
  7. By: Sky, Per Kåre (Centre for Land Tenure Studies, Norwegian University of Life Sciences); Elvestad, Helén Elisabeth (Centre for Land Tenure Studies, Norwegian University of Life Sciences)
    Abstract: Land consolidation courts deal with cases where the relationship between holders of grazing rights needs be regulated, but also where the rights holders are competing with other potential land uses, such as building holiday cabins, forestry, hunting, etc. These cases are governed by the provisions of sections 3-8 and 3-10 of the Land Consolidation Act. We have analysed 20 grazing arrangements, based on the following criteria: duration of the case; substantive and geographic limits to the case, and how the parties’ claims influenced the final shared use arrangement; need for expert advice; the parties’ counsels; clarification of the legal basis and the need for dispute resolution; use of tools provided by the Land Consolidation Act; interconnection with other rights; in cases dealing with several types of land use – did the land consolidation court establish several associations or a single association; and issues arising in established grazing arrangements and associations. We provide examples of the material considerations, both general and detailed, that were given weight when drawing up the rules on grazing.
    Keywords: Land consolidation; Grazing arrangements; Rural areas; Norway
    JEL: K11 Q15
    Date: 2021–01–27
  8. By: Caterina Muratori (Department of Economics, University of Reading)
    Abstract: I document the effect of restrictions on abortion access on violence against women. Limiting access to abortion implies higher rates of unintended pregnancies and subsequent lower bargaining power for women. I start from the evidence of a sharp reduction in the abortion rate and an increase in fertility after the implementation of state laws regulating abortion in the U.S., to evaluate the impact of these restrictive policies on violence against women. I implement a generalized difference-in difference model, finding that a one minute increase in time needed to reach the nearest abortion clinic causes an increase in the number of reported cases of violence against women of 0.12 percent in the same period, and 0.14 percent the following year.
    Keywords: Abortion, Gender Violence, Intimate Partner Violence, Trap Law
    JEL: I11 J12 J13 J16 J18 K23
    Date: 2021–01–29
  9. By: Sá, Ana Isabel
    Abstract: Differences in mortgage law have significant effects on loan characteristics at origination. Borrower-friendly laws impose higher costs and risks for lenders and, thus, induce effects on mortgage pricing and leverage. However, not all borrower-friendly laws have the same effects.This finding is established using loan-level data for the U.S. mortgage market between 2001 and 2011. Judicial foreclosure requirements imply higher mortgage interest rates due to higher recovery costs and activate the price channel. Recourse restrictions imply higher loan collateralization to compensate for the fewer recovery opportunities and activate the collateral channel.
    Keywords: mortgage; mortgage law; interest rate; mortgage pricing; judicial foreclosure; nonrecourse; loan-to-value ratio; credit supply
    JEL: E43 G21 G28 K35
    Date: 2020–12
  10. By: Cristian Dan (Dimitrie Cantemir Christian University of Bucharest, Faculty of Juridical and Administrative Sciences – Law, Bucharest, Romania)
    Abstract: In order to commit a crime, the perpetrator goes through numerous psychological states that are decisive and determined by the social, economic, cultural, cognitive and historical factors of the environment of origin and of the one in which he is to carry out the criminal action. Whether it refers to elements such as the physical, moral or intrinsic nature of the action taken, its analysis must take into account the elements that led the person to adopt such conduct. During the pandemic period, due to the imposition of social distance, the criminal phenomenon experienced a decrease in the diversity of crimes and also a significant increase in the intensity with which illicit actions are committed in certain areas that do not require direct contact between perpetrator and victim. The article aims to analyze some such illegal actions from the perspective of the constituent elements of a criminal law offense, the manner and factors that determined their commission and the relationships created between the active and passive subject during the pandemic period in Romania. Some conclusions, at the end of the paper, will aim at synthesizing all the information presented during it, analyzing the contribution of the state of emergency to reducing crime for certain facts and increasing it for others.
    Keywords: pandemic, criminal law, psychology, criminal act, victims, Criminal Cod, The Romanian Constitution, constituent elements, social values
    Date: 2020–12
  11. By: Sergio Muro; Sofia Amaral-Garcia; Alejandro Chehtman; Nuno Garoupa
    Abstract: When dissents are allowed, judges must decide whether or when to write them. While the main insights of rational dissent theory have been documented and corroborated in several empirical studies, there has been much less evidence testing on how different types of dissent may affect the likelihood of dissent. Particularly, dissents in more salient cases, or more forceful dissents, may have stronger legal effects than dissents appearing in less relevant cases or very narrowly construed dissents. Our article aims to fill that gap in the literature by seeking to isolate varying levels of appeal intensity and types of dissents in the Supreme Court of Argentina. Unlike previous literature, we find that more important cases have a lower likelihood of carrying a dissenting opinion. Yet, when we breakdown dissents by type (that is, reasoned dissents versus boilerplate dissents), we find that majority decisions carrying dissents tend to be longer, but only in cases of reasoned dissents. Furthermore, we show that reasoned dissents are more likely to occur in important cases. Overall, our study highlights that not all dissents should be treated alike as different types of dissent carry different levels of collegial and effort related costs. These costs affect the likelihood of dissent in different and complex ways.
    Keywords: Argentina; Dissents; Judicial behavior
    Date: 2020–01–01
  12. By: He, Sherry; Hollenbeck, Brett; Proserpio, Davide
    Abstract: We study the market for fake product reviews on These reviews are purchased in large private internet groups on Facebook and other sites. We hand-collect data on these markets to characterize the types of products that buy fake reviews and then collect large amounts of data on the ratings and reviews posted on Amazon for these products, as well as their sales rank, advertising, and pricing behavior. We use this data to assess the costs and benefits of fake reviews to sellers and evaluate the degree to which they harm consumers. The theoretical literature on review fraud shows that there exist conditions when they harm consumers and other conditions where they function as simply another type of advertising. Using detailed data on product outcomes before and after they buy fake reviews we can directly determine if these are low-quality products using fake reviews to deceive and harm consumers or if they are possibly high-quality products who solicit reviews to establish reputations. We find that a wide array of products purchase fake reviews including products with many reviews and high average ratings. Soliciting fake reviews on Facebook leads to a significant increase in average rating and sales rank, but the effect disappears after roughly one month. After firms stop buying fake reviews their average ratings fall significantly and the share of one-star reviews increases significantly, indicating fake reviews are mostly used by low quality products and are deceiving and harming consumers. We also observe that Amazon deletes large numbers of reviews and we document their deletion policy.
    Keywords: Online platforms, consumer protection, e-commerce, word-of-mouth
    JEL: K42 L15 L51 L81 M21 M31
    Date: 2021–01–21
  13. By: Marco Rogna; Diep Bich Nguyen
    Abstract: Among industrialized countries, U.S. holds two somehow inglorious records: the highest rate of fatal police shootings and the highest rate of deaths related to firearms. The latter has been associated with strong diffusion of firearms ownership largely due to loose legislation in several member states. The present paper investigates the relation between firearms legislation\diffusion and the number of fatal police shooting episodes using a seven-year panel dataset. While our results confirm the negative impact of stricter firearms regulations found in previous cross-sectional studies, we find that the diffusion of guns ownership has no statistically significant effect. Furthermore, regulations pertaining to the sphere of gun owner accountability seem to be the most effective in reducing fatal police shootings.
    Date: 2021–01
  14. By: LAHLOU, Kamal (Bank Al-Maghrib, Département de la Recherche); DOGHMI, Hicham (Bank Al-Maghrib, Département de la Recherche); SCHNEIDER, Friedrich (Johannes Kepler University of Linz)
    Abstract: The objective of this paper is to estimate the size of the shadow economy in Morocco over the period 1988-2018. The CDA and MIMIC approaches are used while taking into consideration variables that reflect the features of the Moroccan economy such as the importance of currency in circulation, the size of the agricultural sector and the financial development process. Our results show that the evolution of the shadow economy exhibits three distinct periods: (i) over the first period 1988-1998, it is almost stagnant at around 40% of GDP; (ii) during the second period 1999-2008, it decreases to 32% -34% of GDP; (iii) during the last period 2009-2018, the declining trend is continuing but at a more moderate pace, to reach a level just below 30% of GDP. These results suggest that the strategies implemented by national authorities since the early 2000s to improve the institutional, economic and financial environment contributed to reducing the size of the shadow economy. However, the persistence of important shadow activities requires additional structural reforms particularly those related to education, judiciary system, tax policy and labor market.
    Keywords: Shadow economy; MIMIC model; currency demand approach; financial development; structural reforms; Morocco
    JEL: C22 E26 H26 K42 O17 P11
    Date: 2020–12–30
  15. By: Jens-Uwe Franck; Martin Peitz
    Abstract: The article addresses the role market definition can play for EU competition practice in the platform economy. The focus is on intermediaries that bring together two (or more) groups of users whose decisions are interdependent and which therefore are commonly referred to as “two-sided platforms”. We address challenges to market definition that accompany these cross-group network effects, assess current practice in a number of cases with the European Commission and Member States’ competition authorities, and provide guidance on how practice is to be adapted to properly account for the economic forces shaping markets with two-sided platforms. Owing to the complementarities of services provided to the user groups the platforms cater to, the question arises whether and when a single market can be defined that encompasses both sides. We advocate a multi-markets approach that takes account of cross-market linkages, acknowledges the existence of zero-price markets, and properly accounts for the homing behaviour of market participants.
    Keywords: antitrust law, EU competition practice, market definition, market power, Market Definition Notice, two-sided platforms, digital markets, network effects, matching platforms, zero-price markets, homing decisions, SSNIP test
    JEL: K21
    Date: 2021–01
  16. By: Cristian Dan (Dimitrie Cantemir Christian University of Bucharest, Romania)
    Abstract: For a long time, after the appearance of man on Earth, the human being lived in disorder, relying only on animal instincts, strictly satisfying his primary needs for food, shelter and reproduction. Evolution, however, forced him to adopt another way of life, the social one, settling and grouping in systems of an administrative organization called, at first tribes, and then villages and cities. This way of systematizing and stabilizing the population brought great changes in human psychology, especially in the nature of its consciousness, developing the concept of incipient morality. A little later, but also in the same period, the legal system appears in the background of the development of the fortress. The latter sought to derive its essence from the already existing rules, being closely related to the system of moral norms. The article aims to briefly analyze the psychological and social factors that led to the emergence and structuring of moral norms by comparison with the legal system, viewed through the prism of the evolution and organization of human life, both socially and philosophically. Some conclusions drawn at the end of the paper will aim to clearly highlight the fact that law, in general, and its system, in particular, has its beginning in moral psychology merging with it and forming mandatory socio-behavioral rules.
    Keywords: civil law, morality, legal ethics, philosophy, psychology, criminal law, religion, legal system, conduct, general theory of law
    Date: 2020–11
  17. By: Nicoleta-Elena Heghes (Dimitrie Cantemir Christian University of Bucharest, Romania); Cristina-Gabriela Schiopu (Institute of Psychiatry Socola Iasi, Romania)
    Abstract: Criminality as a social and legal phenomenon tends to be generalized. Anti-social behavior has no legal gender differences and they are condemned in the same way, depending on the gravity of the offence. The social and psychological impact of the criminal activity, on the other hand, gives the differences and the severity of the individual and general repercussions inside the affected environment. Although feminine criminality has lower rates, it tends to cover a larger area of severe and brutal felonies with higher impact. In this paper, we intend to analyze gender-dependent characteristics, environmental factors, psychological and physiological elements of female anti-social behavior and a woman’s road to becoming an offender, most often, from the status of familial and social dysfunctional ambiance.
    Keywords: feminine, criminal, psychology, society, justice
    Date: 2020–12
  18. By: Adina Georgeta Ponea (University of Craiova, Faculty of Law, Craiova, Romania)
    Abstract: The special legislation on incompatibilities and conflicts of interest aims to ensure the transparency in the exercise of the stateliness and public functions and in the business environment, the prevention and sanctioning of corruption, also establishing, among the specific rules and conditions for exercising the mandate, certain incompatibilities taking into account the need to ensure the neutral fulfilment, by the persons exercising a public function of authority, of the attributions incumbent on them, in full accordance with the principles of impartiality, integrity, transparency of the decision and supremacy of the public interest. Therefore, the establishment of the case of incompatibility does not constitute, in reality, a restriction of the exercise of certain rights or freedoms, but a guarantee likely to confer an indisputable moral authority to the persons exercising the functions of mayor, president and vice-president of the county council, by ensuring impartiality, protecting the social interest and avoiding conflict of interest. From the perspective of the ethical nature of the sanction, the jurisprudential controversy concerns the possibility of disposing the sanction provided by law that would affect their current mandate, if in this mandate the acts that would attract such a sanction were not committed, the state of incompatibility not existing in this mandate.
    Keywords: incompatibilities, conflict of interest, mandate, public function of authority, principle of transparency of the decision, principle of impartiality, ethical nature of the sanction
    Date: 2020–11
  19. By: Adriana Tulus (Titu Maiorescu University, Bucharest, Romania)
    Abstract: The crimes under the name of “False Offenses†constitute a well-defined and highly varied category in the vast sphere of facts considered to be dangerous. Any social relationship concerns and is based on a certain reality that the subjects of the relationship have in mind and whose existence therefore implies a mutual good faith and trust on the part of these subjects. Without the duty of respect for the truth and without the feeling of trust that the truth is actually respected, social relations would be possible only with difficult precautions and inevitable risks. Therefore, the criminal law considered that it is necessary that, in order to protect social relations, to ensure the normal formation and development of these relations, to be incriminated the deeds by committing which, altering the truth, creates a serious danger or harm certain social relations. These categories of facts can be determined either on the basis of the special way in which the truth is altered or on the specifics of the social relations reached by the act of altering the truth, or due to the nature of the trust that is given to the truth. These differences obviously appear in the sphere of crimes that involve an alteration of truth. In the group of false crimes, the alteration of the truth is made on some entities (things) which are legally attributed the property of serving as evidence of the truth they express or attest on the occasion of various social relations (coins, stamps, credit titles, seals, marking tools, documents, etc.), and trust is objectively given to the thing which in itself constitutes the proof of the truth.
    Keywords: false, social relations, crime, truth, criminal code, documents, alteration
    Date: 2020–12
  20. By: Cibelli Nobre S. P. (Universidad de Salamanca); Ángel B. Espina Barrio (Universidad de Salamanca); Ricardo Nobre H. (UFC - Universidade Federal do Ceará = Federal University of Ceará)
    Abstract: In Brazil, the last decades have been characterized by a sharp increase in the crime rate, mainly due to the high number of homicides, accompanied by the growth of the prison population, the strengthening of criminal factions that act in correctional institutions and the inefficiency of the state machine in the fight against crime. In this article, we will address each of these issues, as well as highlighting the current improvement in violence rates and the fight against organized crime through the joint action of the state and federal governments of Brazil.
    Abstract: En Brasil, las últimas décadas se han caracterizado por un fuerte aumento en la tasa de criminalidad, especialmente debido al alto número de homicidios, acompañado por el crecimiento de la población carcelaria, el fortalecimiento de las facciones criminales que trabajan dentro de las instituciones correccionales y por la ineficiencia de la máquina estatal para combatir el crimen. En este artículo abordaremos cada uno de estos temas, como también destacaremos la mejora actual en las tasas de violencia y la lucha contra el crimen organizado, a través de la acción conjunta de los gobiernos estatales y federales de Brasil.
    Keywords: Criminality,Homicides,Impunity,Criminal Organizations,Criminalidad,Homicidios,Impunidad,Organizaciones criminales
    Date: 2020–09–30
  21. By: Büchel, Jan; Rusche, Christian
    Abstract: The Digital Age saw the rise of several rapidly growing digital platforms with substantial market shares. Europe is a large target market for these globally operating platforms, although the majority of the most successful platforms come from the USA or Asia. In general, platform ecosystems differ from regular market environments: platforms extend to several markets and user groups at the same time and there is an increased degree of dynamics in the allocation of market shares in platform ecosystems, which leads to a pressure to constantly innovate. Platform ecosystems vary among themselves, not least due to the different types of platform business models or their varying impact on the whole sector. Recent developments have included the emergence of particularly overwhelming platforms, known as "gatekeepers", that control entire platform ecosystems. A gatekeeper obtains durable and stable significant market power in the market for intermediation services, it has a large impact on the underlying market(s) and it is vital for users from all sides of the platform. In contrast to conventional platforms, for gatekeepers the ability to contest any of the markets is significantly reduced from the perspective of competing platforms, not least due to significant lock-in effects for consumers. But too tight regulation and pre-emptive intervention without any occasion is not preferable. Rash and untailored action negatively affects the development and growth opportunities for online platforms that do not intend to breach existing competition rules. Indirectly, that harms consumers, by restricting innovation and the availability of products and services. Tailored procedures for individual large online platforms with gatekeeper power on a case-by-case basis are more expedient. Thereby the current regulatory framework is capable of acting and builds on established legal pillars. However, tailored modernisation and adaption, for example in merger control, is helpful for ensuring fair competition. Merger control can be empowered by including data and other synergies between involved enterprises into assessments in order to prevent the formation of gatekeepers.
    JEL: G34 K21 L12
    Date: 2020
  22. By: Geoffrey Parker; Georgios Petropoulos; Marshall Van Alstyne
    Abstract: Digital platforms are at the heart of online economic activity, connecting multi-sided markets of producers and consumers of various goods and services. Their market power and their privileged ecosystem positions raise concerns that they may engage in anti-competitive practices that reduce innovation and consumer welfare. This paper deals with the role of market competition and regulation in addressing these concerns. Traditional (ex-post) antitrust intervention will be less effective in markets...
    Date: 2020–11

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