Technology Giants, the Moligopoly Hypothezis and Holistic Competition: A Primer

Posted by Social Science Research Network

Technology Giants, the Moligopoly Hypothezis and Holistic Competition: A Primer

Nicolas Petit (University of Liege)

Abstract:      This paper shows that the technology giants that antitrust agencies tend to characterize as entrenched monopolists can also be seen as firms engaged in a process of vibrant oligopolistic competition. Those firms – we refer to them as “moligopolists” – compete against the non-consumption in search of new and low-end market footholds. The failure of the antitrust structure to see that rivalry – its intensity may vary from one company to another – originates both in mainstream economics and applied competition theory. We believe those defects can be cured with a rechanneling of antitrust policy towards certain types of restraints, in certain types of market settings.

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