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Economic theory, Macro- and Regional economy

November 24, 2023; Seoul, South Korea: III International Scientific and Practical Conference «THEORETICAL AND PRACTICAL ASPECTS OF MODERN SCIENTIFIC RESEARCH»


LEVERAGE EFFICIENCY IN THE CONTEXT OF DIGITAL PLATFORMS


DOI
https://doi.org/10.36074/logos-24.11.2023.01
Published
28.11.2023

Abstract

Due to the historical development of the leverage doctrine, the term "leverage" has negative connotations and is often associated with actions that have no effect or purpose except to suppress competition. According to the general theory, leverage occurs when a firm uses its monopoly power in one market to extend it to an adjacent market, while using market power on this market by raising prices or limiting output or quality [1]. In antitrust circles, leverage has become a term that can be distinguished from behaviour that suppresses competition in an already dominant market [2]. Thus, by definition, leverage implies "the creation of a new or second monopoly" [3].

References

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  2. Ward S. Bowman, Tying Arrangements and the Leverage Problem (1957), 67 YALE L.J. p. 19.
  3. Richard Schmalensee & David S. Evans, Markets with Two-Sided Plat- forms (2009), in 1 ISSUES IN COMPETITION L. AND POL'Y 667
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  6. United States v. Microsoft Corp., 147 F.3d 935, 948 (D.C. Cir. 1998)
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