Titelaufnahme

Titel
New technology and increasing returns : the end of the antitrust century? / Kaushik Basu (Cornell University and IZA) ; IZA, Institute of Labor Economics
VerfasserBasu, Kaushik
KörperschaftForschungsinstitut zur Zukunft der Arbeit
ErschienenBonn, Germany : Institute of Labor Economics, April 2019
Ausgabe
Elektronische Ressource
Umfang1 Online-Ressource (18 Seiten) : Diagramme
SeriePolicy paper ; no. 146
URNurn:nbn:de:hbz:5:2-188610 
Zugriffsbeschränkung
 Das Dokument ist öffentlich zugänglich im Rahmen des deutschen Urheberrechts.
Volltexte
New technology and increasing returns [0.37 mb]
Links
Nachweis
Verfügbarkeit In meiner Bibliothek
Zusammenfassung

The advance of digital technology is changing the nature of markets, enhancing the capacity of corporations to extract more consumers surplus and lower the wages paid to workers. The rise of new technology has also diminished the efficacy of traditional laws to regulate firms and corporations. This is best illustrated by antitrust laws. With the new technology, there is greater returns to scale in production, and further, it is possible to have different components of the same final good be produced by different firms in faraway places. Unlike in earlier times the n firms in one industry, say the automobile industry, would all be producing cars, now the n firms in that industry produce n different parts of the product, thereby getting enormous returns to scale. Such markets are described as vertically serrated markets and their equilibria are characterized. Traditional antitrust law does not apply to these markets because the high returns to scale are natural and not artificially induced. This compels us to look for novel ways to regulate such markets. This paper discusses, in particular, laws that compel firms to have widely dispersed share holdings.