Jeon, Doh-Shin, Lefouili, Yassine and Madio, Leonardo (2022) Platform liability and innovation. TSE Working Paper, n. 22-1361, Toulouse

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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: September 2022
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
Divisions: TSE-R (Toulouse)
Institution: Université Toulouse Capitole
Site: UT1
Date Deposited: 20 Sep 2022 07:48
Last Modified: 15 Mar 2024 09:47
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