John B. Kirkwood explains six ways in which Big Tech’s alliances with AI startups could harm competition, making clear that the antitrust agencies have good reasonto monitor and investigate them.| ProMarket
Vivek Ghosal reviews the data, economics, and market conditions of the growing artificial intelligence market and finds that it is quite dynamic in terms of evolving partnerships and firms, and is relatively competitive. Thus, Big Tech investments into AI startups do not warrant investigation by the government at this time.| ProMarket
Large digital platforms have evolved into vast multimarket/multiproduct conglomerates, both organically and through a decade-long acquisition spree. Conduct and mergers can no longer be evaluated “market-by-market.” Yet the antitrust assessment of these “ecosystems” is still in its infancy, and regulators seeking to explore harm arising from the control of multiple assets and capabilities are falling back on traditional theories of harm that are more likely to resonate with judges. Su...| ProMarket
ProMarket is the publication of the George J. Stigler Center for the Study of the Economy and the State at the University of Chicago Booth School of Business. ProMarket is an academic forum focused on topics of special interest capture, antitrust, political economy, and the future of capitalism. Economists have become increasingly technical and specialized, […]| ProMarket
Matt Perault writes that there is little indication that Big Tech investments in artificial intelligence startups are harming competition. In fact, the opposite is likely true. Antitrust regulators should instead focus their attention on the real threat to AI competition: rules and regulations that will make it harder for startups that to compete with large tech companies.| ProMarket
ChatGPT maker quietly clarifies that tech giant has no equity despite $13bn investment — but is in line to make big profits| www.ft.com
Joseph Schumpeter (1883–1950) coined the seemingly paradoxical term “creative destruction,” and generations of economists have adopted it as a shorthand description of the free market’s messy way of delivering progress. In Capitalism, Socialism, and Democracy (1942), the Austrian economist wrote: The opening up of new markets, foreign or domestic, and the organizational development from the […]| Econlib
