Competition and industrial policy in the 21st century

Résumé

Large fixed costs and (direct and indirect) network externalities generate barriers to entry and high markups for winners in the digital industry. The potential for high prices, low innovation and abuses of dominant position as well as the contribution to rising inequality raise the question of how countries should regulate the industry. The tech giants’ dominance does not confront us with an unpalatable choice between laissez-faire and populist interventions. The commentary explains economic stakes, considers desirable adaptations of regulation in the digital age and draws some conclusions for policy reform.

Mots-clés

Voir aussi

Jean Tirole, « Competition and the Industrial Challenge for the Digital Age », Annual Review of Economics, vol. 15, septembre 2023, p. 573–605.

Référence

Jean Tirole, « Competition and industrial policy in the 21st century », Oxford Open Economics, vol. 3, juillet 2024, p. i983–i1001.