Monthly Archives: December 2014

Economics of platforms: Implications for cyberinfrastructure

I recommend an interesting paper by Glen Weyl and Alexander White, “Let the Best ‘One’ Win: Policy Lessons from the New Economics of Platforms.”  The abstract summarizes the message:

The primary policy problem in platform markets is usually considered to be excessive lock-in to a potentially inefficient dominant platform. We argue that, once one accounts for sophisticated platform pricing strategies, such concerns are overblown. Instead the greater market failure is excessive fragmentation and insufficient participation. These problems, in turn, call for a very different policy response: aiding winners in taking all,

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