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Research paper | Open Access

Research on market power and market structure: A direct measure of market power of internet platform enterprises

Baowen Sun1, Wenjun Jing1( ), Xuankai Zhao2, Yi He2
School of Information, Central University of Finance and Economics, Beijing, China
China Center for Internet Economy Research, Central University of Finance and Economics, Beijing, China
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Abstract

Purpose

This paper aims to clear whether the monopoly structure of the internet industry has produced market power and discussed the welfare change of the internet industry monopoly.

Design/methodology/approach

By using new empirical industrial organization methods and taking the e-commerce market as an example, the authors measured market power and economies of scale of the internet platform companies.

Findings

Internet platform enterprises have formed scale economy, but it has not had market power, and the industry still maintains high levels of competition; also, the emergence of large enterprises may increase the welfare of consumers.

Originality/value

The conclusion of this paper clarified actual competition status of internet industry and provided a new foothold for regulation and ideas for the traditional industry to crack the Marshall Conflict.

Keywords

Market powerEconomy of scaleInternet platform enterpriseNew empirical industry organizationWelfare losses

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International Journal of Crowd Science
Volume 1 Issue 3,
September 2017
Pages 210-222
DOI: 10.1108/IJCS-08-2017-0009
Cite this article:
Sun B, Jing W, Zhao X, et al. Research on market power and market structure: A direct measure of market power of internet platform enterprises. International Journal of Crowd Science, 2017, 1(3): 210-222. https://doi.org/10.1108/IJCS-08-2017-0009

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Received: 02 August 2017
Revised: 06 September 2017
Accepted: 07 September 2017
Published: 04 September 2017
© The author(s)

Baowen Sun, Wenjun Jing, Xuankai Zhao and Yi He. Published in International Journal of Crowd Science. Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode
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