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[...] We are skeptical about the specific charge against Amazon—namely, that book prices will rise significantly once the company’s dominance is complete—but we are somewhat more sympathetic to the idea that Amazon might act as too powerful a gatekeeper for an important cultural industry, perhaps e…

Over the last two generations, as Andrei Shleifer has noted, most economists and political theorists have shifted from viewing government intervention in a positive light to preferring privatization. Today, there’s a trend toward regulation that was once provided by governments now being provided b…

Thus, when a firm can erect barriers to entry, it can keep competitors out, and entrants with substitute products cannot storm the castle. When a firm can subjugate suppliers, competition among them weakens their bargaining power so the firm can keep its costs low. When a firm can subjugate buyers …

In the complexity of the governance issues they face, today’s biggest platform businesses resemble nation-states. With more than 1.5 billion users, Facebook oversees a “population” larger than China’s. Google handles 64 percent of the online searches in the U.S. and 90 percent of those in Europe, w…

[...] How do you convert a product to a platform in the business-to-business (B2B) arena? Many corporations own massive fixed assets like power generation plants, magnetic resonance imaging (MRI) machines, or tracts of farmland. How do you build platforms around those?

The answer: you de-link ow…