Antitrust & Competitiveness Plan Blog

Sector Focus and Information and facts Know-how

Boston University

Market concentration has been increasing in the United States considering the fact that 1980. Does this signal declining competitors and the require for a new antitrust coverage? Or are other aspects triggering concentration to raise? This paper explores the position of proprietary data know-how (IT), which could maximize the productiveness of leading corporations relative to many others and increase their current market share. Instrumental variable estimates discover a solid hyperlink concerning proprietary IT and increasing sector focus, accounting for most of its progress. Also, the top rated four companies in each and every field advantage disproportionately. Significant investments in proprietary software—$250 billion per year—appear to noticeably impact industry framework.

https://lawprofessors.typepad.com/antitrustprof_weblog/2020/11/industry-focus-and-information and facts-technological know-how.html