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Jeon, Doh-Shin
, Lefouili, Yassine and Madio, Leonardo
(2025)
Platform liability and innovation.
TSE Working Paper, n. 22-1361, Toulouse
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Abstract
We study a platform’s incentives to delist IP-infringing products and the effects of holding the platform liable for the presence of such products on innovation and consumer welfare. For a given number of buyers on the platform, platform liability increases innovation by reducing the competitive pressure that innovative products face from IP-infringing products. However, platform liability can have unintended consequences, which can overturn this intended effect on innovation. Moreover, there can be a misalignment of interests between innovators and buyers as platform liability reduces consumer surplus for a given number of innovators. We also analyze how different types of cross-group network effects liability on innovation and consumer welfare.
| Item Type: | Monograph (Working Paper) |
|---|---|
| Language: | English |
| Date: | June 2025 |
| Place of Publication: | Toulouse |
| Uncontrolled Keywords: | Platform, Liability, Intellectual Property, Innovation. |
| JEL Classification: | K13 - Tort Law and Product Liability K40 - General K42 - Illegal Behavior and the Enforcement of Law L13 - Oligopoly and Other Imperfect Markets L86 - Information and Internet Services; Computer Software |
| Subjects: | B- ECONOMIE ET FINANCE |
| Divisions: | TSE-R (Toulouse) |
| Institution: | Université Toulouse Capitole |
| Site: | UT1 |
| Date Deposited: | 20 Sep 2022 07:48 |
| Last Modified: | 08 Jul 2025 07:42 |
| OAI Identifier: | oai:tse-fr.eu:127344 |
| URI: | https://publications.ut-capitole.fr/id/eprint/46282 |
