Podcast
Questions and Answers
What is cited as a key factor in the United States' lead in platform firm development?
What is cited as a key factor in the United States' lead in platform firm development?
- Strict government regulations on technology companies.
- Military spending on research and development. (correct)
- A focus on incremental technological change.
- The lack of available financial capital.
In the context of platform firms, what does the 'fragmentation of state regulatory capacity' refer to?
In the context of platform firms, what does the 'fragmentation of state regulatory capacity' refer to?
- The division of labor within platform companies.
- The sharing of regulatory powers between multiple countries.
- The limited ability of different states to apply uniform regulations. (correct)
- The overabundance of regulations that make following them difficult.
According to the content, which aspect of US antitrust law has supported the platform business model?
According to the content, which aspect of US antitrust law has supported the platform business model?
- Its restrictive approach to intellectual property.
- Its focus on protecting established businesses.
- Its primary goal of preventing monopolies.
- Its pro-consumer orientation. (correct)
Which of these most accurately describes the ‘patient capital’ mentioned in the text?
Which of these most accurately describes the ‘patient capital’ mentioned in the text?
What is a key challenge posed by the emergence of new corporate forms, such as platform firms?
What is a key challenge posed by the emergence of new corporate forms, such as platform firms?
What kind of innovation does the US political economy tend to support?
What kind of innovation does the US political economy tend to support?
Besides technological innovation, which of these is cited as a necessary condition for new technologies to reach broad markets?
Besides technological innovation, which of these is cited as a necessary condition for new technologies to reach broad markets?
Which of the following was NOT cited as contributing to the permissive environment in the United States for platform firms?
Which of the following was NOT cited as contributing to the permissive environment in the United States for platform firms?
What is NOT typically cited as a reason for the United States' leadership in platform capitalism?
What is NOT typically cited as a reason for the United States' leadership in platform capitalism?
Which characteristic of the US regulatory environment has facilitated the rapid expansion of platform networks?
Which characteristic of the US regulatory environment has facilitated the rapid expansion of platform networks?
What is a political-economic characteristic the text identifies as being associated with the consumer-investor coalition that the platform economy relies on?
What is a political-economic characteristic the text identifies as being associated with the consumer-investor coalition that the platform economy relies on?
What type of capital does the text say is required for platform firms to achieve scale?
What type of capital does the text say is required for platform firms to achieve scale?
What is essential for modernizing restraints on corporate power in the face of platform capitalism?
What is essential for modernizing restraints on corporate power in the face of platform capitalism?
According to Gifford and Kudrie, what is a primary difference in focus between European and US competition law?
According to Gifford and Kudrie, what is a primary difference in focus between European and US competition law?
What is cited in the text as the basis for the social contract in the twentieth century?
What is cited in the text as the basis for the social contract in the twentieth century?
How does EU law typically approach the issue of dominant firms abusing market power?
How does EU law typically approach the issue of dominant firms abusing market power?
What was a common aspect of the twentieth-century firms like General Motors or Ford?
What was a common aspect of the twentieth-century firms like General Motors or Ford?
What does the 'European reflex' in competition policy primarily favor?
What does the 'European reflex' in competition policy primarily favor?
What is a defining characteristic of the American political economy, that has contributed to the extreme manifestation of platform capitalism?
What is a defining characteristic of the American political economy, that has contributed to the extreme manifestation of platform capitalism?
How does the European Union's competition policy view 'new economy' firms in innovation-intensive sectors?
How does the European Union's competition policy view 'new economy' firms in innovation-intensive sectors?
What is a major difference between the US and EU approaches to competition law regarding non-consumer objectives?
What is a major difference between the US and EU approaches to competition law regarding non-consumer objectives?
How do companies like Amazon and Uber use consumer benefits in the US context?
How do companies like Amazon and Uber use consumer benefits in the US context?
For platform firms, what is a key characteristic of the investors that provide funding?
For platform firms, what is a key characteristic of the investors that provide funding?
Which of the following best describes the role of consumerism in US antitrust law?
Which of the following best describes the role of consumerism in US antitrust law?
According to the provided material, which of the following concepts is NOT directly associated with the analysis of corporations in the 21st century?
According to the provided material, which of the following concepts is NOT directly associated with the analysis of corporations in the 21st century?
The ‘fissured workplace’ concept, as discussed in the provided content, primarily refers to:
The ‘fissured workplace’ concept, as discussed in the provided content, primarily refers to:
Which of these is most closely associated with the critique of shareholder primacy in the provided material?
Which of these is most closely associated with the critique of shareholder primacy in the provided material?
The rise of the platform economy, as highlighted in the provided material, is best exemplified by:
The rise of the platform economy, as highlighted in the provided material, is best exemplified by:
Which concept does the provided material NOT address in the context of corporate governance and power?
Which concept does the provided material NOT address in the context of corporate governance and power?
Based on the provided text, which of the following describes a key transformation in how some major employers operate?
Based on the provided text, which of the following describes a key transformation in how some major employers operate?
Which author is credited with significant work on the ‘fissured workplace’ according to the provided material?
Which author is credited with significant work on the ‘fissured workplace’ according to the provided material?
The information provided discusses the concept of 'corporate power' in the twenty-first century. Which of these factors is presented as contributing to the shifting dynamics of this power?
The information provided discusses the concept of 'corporate power' in the twenty-first century. Which of these factors is presented as contributing to the shifting dynamics of this power?
Which company is identified as the first expression of mass retail platform power in a pre-internet world?
Which company is identified as the first expression of mass retail platform power in a pre-internet world?
What is a common characteristic seen in both 'offline' and technology-enabled platforms?
What is a common characteristic seen in both 'offline' and technology-enabled platforms?
What is one of the key metrics used by YouGov in their global brand health index?
What is one of the key metrics used by YouGov in their global brand health index?
Which of these companies does the text NOT directly identify as being in the top ten of the global brand health index?
Which of these companies does the text NOT directly identify as being in the top ten of the global brand health index?
Based on the information, who was involved in the analysis of 'Are We All Amazon Primed?'?
Based on the information, who was involved in the analysis of 'Are We All Amazon Primed?'?
What was the result of city governments pushing back against Uber?
What was the result of city governments pushing back against Uber?
Which of the following does not relate to the concept of 'platform power' as described in the text?
Which of the following does not relate to the concept of 'platform power' as described in the text?
According to the Morning Consult poll, what was the approximate approval rating for top companies in the United States?
According to the Morning Consult poll, what was the approximate approval rating for top companies in the United States?
According to Gutiérrez and Philippon, what is the primary reason for the difference in antitrust enforcement between the EU and the US?
According to Gutiérrez and Philippon, what is the primary reason for the difference in antitrust enforcement between the EU and the US?
What is suggested about the consistency of the observation of differences in EU and US antitrust policies and the analysis in Varieties of Capitalism?
What is suggested about the consistency of the observation of differences in EU and US antitrust policies and the analysis in Varieties of Capitalism?
Which factor do Gutiérrez and Philippon suggest is a key differentiator in the enforcement of competition policy between the EU and the US?
Which factor do Gutiérrez and Philippon suggest is a key differentiator in the enforcement of competition policy between the EU and the US?
What is implied about the political embedding of European antitrust regulators compared to their US counterparts?
What is implied about the political embedding of European antitrust regulators compared to their US counterparts?
How are US regulators influenced in the context of enforcing competition policy?
How are US regulators influenced in the context of enforcing competition policy?
What does the text suggest about the political organization of financial interests in the United States?
What does the text suggest about the political organization of financial interests in the United States?
According to Hall and Soskice, how is venture capital viewed in the context of liberal-market-economies?
According to Hall and Soskice, how is venture capital viewed in the context of liberal-market-economies?
Which of the following groups is cited as being politically well-organized in the text?
Which of the following groups is cited as being politically well-organized in the text?
Flashcards
Consolidated Firm
Consolidated Firm
The traditional model of a large, stable company with many employees, unionization, benefits, and a clear hierarchy, exemplified by General Motors or Ford.
Transformations of the Firm
Transformations of the Firm
The shift from traditional, consolidated firms to a new model driven by digital platforms, characterized by flexible work arrangements, complex ownership structures, and a focus on data and algorithms.
Corporate Consolidation
Corporate Consolidation
The process of companies becoming increasingly large and influential, often through mergers and acquisitions, and exerting more control over markets and resources.
Corporate Agility
Corporate Agility
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Platform Capitalism
Platform Capitalism
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Personalized Experiences
Personalized Experiences
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Fissurization
Fissurization
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Financialization
Financialization
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Government's role in platform technology
Government's role in platform technology
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US political economy and platform firms
US political economy and platform firms
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Fragmentation of regulation and platform firms
Fragmentation of regulation and platform firms
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Antitrust law and platform firms
Antitrust law and platform firms
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Financialization and platform firms
Financialization and platform firms
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Platform firms and regulatory challenges
Platform firms and regulatory challenges
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US vs. Europe: Platform firm success
US vs. Europe: Platform firm success
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Platform firms: Factors of success
Platform firms: Factors of success
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EU vs. US Competition Law
EU vs. US Competition Law
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Abuse of Dominant Position
Abuse of Dominant Position
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European Skepticism towards 'New Economy' Firms
European Skepticism towards 'New Economy' Firms
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US Antitrust Focus on Consumer Welfare
US Antitrust Focus on Consumer Welfare
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Antitrust Legitimacy through Customer Focus
Antitrust Legitimacy through Customer Focus
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Platform Firm Financing
Platform Firm Financing
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US Consumerism Ideology
US Consumerism Ideology
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Winner-Take-All Investment
Winner-Take-All Investment
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Enforcement as the Key Difference in Antitrust
Enforcement as the Key Difference in Antitrust
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Oligopoly
Oligopoly
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Shareholder Primacy
Shareholder Primacy
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US Antitrust and Political Influence
US Antitrust and Political Influence
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Shareholder-centric Model
Shareholder-centric Model
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Platform Economy
Platform Economy
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Gig Economy
Gig Economy
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Corporate Power Concentration
Corporate Power Concentration
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Managed by the Markets
Managed by the Markets
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Shareholder Value Maximization
Shareholder Value Maximization
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Scalable Startup
Scalable Startup
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Study Notes
Introduction
- This article explores the transformation of twenty-first-century capitalism, focusing on platform business models.
- Existing literature often attributes the change to market and technological developments.
- This article highlights the political forces driving this transformation, contrasting the twentieth-century firm with the platform firm.
- The article analyzes the US political-economic context, emphasizing its role in facilitating platform capitalism and exacerbating associated inequalities.
Abstract
- The article explores the changing nature of 21st-century capitalism, emphasizing political coalitions and institutional factors that support it.
- Existing literature often focuses on market and technological changes.
- The article emphasizes political forces driving the transformation from the traditional firm to the platform firm.
- The US is analyzed comparatively, highlighting how its political-economic institutions facilitate platform transformations and inequalities.
Keywords
- United States
- Political economy
- Platform capitalism
- Antitrust
- Consumers
Platform Capitalism
- Uber exemplifies excesses and promise of 21st-century capitalism.
- The gig economy characterizes the platform firm, with precarious and yet optimized work for firms and users.
- Platform firms represent a new form of enterprise.
- Relationships with investors and driver-partners/employees reflect this new form.
Network of Contracts (NOC)
- The mid-century firm embodied reciprocal relationships with internal and external stakeholders.
- Stable long-term growth supported by long-term capital (e.g., banks in Europe, dispersed shareholders in US).
- The 20th century saw a shareholder revolution.
- This shift in power from firms and managers to investors and securities analysts changed the firm's structure.
- The firm shifted into a network of contracts (NOC).
- "Nikefication" is a core feature of the NOC model, downsizing for value maximization by aggressive outsourcing and asset stripping.
Platform Firm
- The 21st century firm is a platform-based business model.
- The model builds on 1980s/1990s developments.
- The platform firm gathers immense data, acting as a critical intermediary and market maker.
- Examples include service (Uber, Upwork), goods (Amazon), and information platforms (Google, Facebook).
Market Dominance
- Some contemporary platform firms wield massive market dominance, comparable to classic monopolies.
- Dominance isn't about ownership, but deeper control of actions within the platform's infrastructure.
- Indicators like market capitalization and market share might underestimate the true extent of dominance.
Key Political-Economic Factors Facilitate Platform Capitalism
- Patient capital back the platform firms' strategies, contrasting with the more short-termism of the NOC firm.
- The investor's focus in today's platform firms is mainly on market dominance and creating the foundational infrastructure of a sector.
- Consumers are vital in the strategy of platform firms.
- An active role in the public narrative and political discourse.
US Political Context Enables Platform Capitalism
- US fragmented policy landscape enables rapid network expansion.
- US strong consumer-investor coalition supports the platform model.
- The highly financialised US political context provides the capital that enables platform growth.
The Changing Nature of the Firm
- The traditional firm was characterized by internal integration with a large stable workforce and a nexus of reciprocal relationships between internal and external stakeholders.
- The NOC firm emerged, prioritizing investor interests and marked by aggressive outsourcing, streamlined production, and a shift away from traditional employment models.
- Platform firms represent a distinct evolution, characterized by:
- network effects
- collaborative control
- user-centric dynamics
- intense data collection
Counter-argument
- Platform firms are different from the previous forms since the focus of their success is not on direct ownership, but on control through platform algorithms to manage actions of all stakeholders.
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