Optimal Economic Regulation of the Online Platforms

Document Type : Original Article

Authors

1 Economic Law, Faculty of Law, Shahid behehshti University

2 Economic Law, Faculty of law. Shahid Beheshti University

10.29252/jlr.2021.185051.1633

Abstract

Abstract
Nowadays, online platforms are known as Internet intermediaries in consumer-seller relationships. These platforms, as independent economic actors, play an essential role in making transactions between individuals, contractual terms and even determining the price of goods and services in the WEB. The considerable impact of these platforms on the related market, the network effects, the negative externalities and the public access to these platforms have attracted the attention of regulators to this emerging phenomenon. Using economic indicators and legal instruments, this paper tries to examine the behavior of consumers, sellers and Internet platforms in order to present the optimal economic regulation. Based on our findings, contrary to bureaucrats’ beliefs, platforms are considered as one of the most important regulators of markets due to their technical capability and motivation to build trust and transparency in the platform. However, the role of government regulation should not be overlooked in cases such as network externalities and monopolistic situations.

Keywords

Main Subjects


الف( منابع فارسی
مقاله
0 .زارعی، محمدحسین، شمس، عرفان، مفهاوم خاودتنظیمی در نظریاه هاای اقتصااد
سیاسی، مجله تحقیقات حقوقی، زمستان 0125 ،ویژهنامه شماره 00.
ب( منابع انگلیسی
Books
2.Baldwin, R., Cave, M., & Lodge, M. (2012). Understanding regulation:
theory, strategy, and practice. Oxford University Press on Demand.
3.Laibson, David, Acemoglu, (2016). John A. List ,Daron, Microeconomics,
Pearson pub, 4th edition.
4.Parker, G. G., Van Alstyne, M. W., & Choudary, S. P. (2016). Platform
Revolution: How Networked Markets Are Transforming the Economy? and
How to Make Them Work for You. WW Norton & Company.
Articles
5.Ang, L., Dubelaar, C., & Lee, B. C. (2001). “To trust or not to trust? A
model of internet trust from the customer's point of view”. BLED 2001
Proceedings, 43.
6.Armstrong, M. (2006). “Competition in two sided markets”. The RAND
Journal of Economics, 37(3), 668-691.
7.Boudreau, K. J., & Hagiu, A. (2009). “Platform rules: Multi-sided
platforms as regulators. Platforms”, markets and innovation, 1, 163-191.
8.Caldari, K., & Masini, F. (2011).” Pigouvian versus Marshallian tax:
market failure, public intervention and the problem of externalities”. The
European Journal of the History of Economic Thought, 18(5), 715-732.
9.Coase, R. H. (1960). “The problem of social cost”. In Classic papers in
natural resource economics . Palgrave Macmillan, London, 87-137.
10.Ducci, F. (2016). “Out-Of-Market Efficiencies, Two-Sided Platforms,
and Consumer Welfare: A Legal and Economic Analysis”. Journal of
Competition Law & Economics, 12(3), 591-622.
فصلنامه تحقیقات حقوقی شماره 94 تنظیمگری بهینه اقتصادی در حوزۀ سکو)پلتفرم(ی اینترنتی
521
11.Erdem, T., & Keane, M. P. (1996).” Decision-making under uncertainty:
Capturing dynamic brand choice processes in turbulent consumer goods
markets”. Marketing science, 15(1), 1-20.
12.Lee, B. C., Ang, L., & Dubelaar, C. (2005).” Lemons on the Web: A
signalling approach to the problem of trust in Internet
commerce”. Journal of Economic Psychology, 26(5), 607-623.
13.Reed, S. (1999).” Online shopping? You bet!” InfoWorld, 21(43), p. 91.
14.Scott, C. (2004). “Regulation in the age of governance: The rise of the
post-regulatory state”. The politics of regulation: Institutions and
regulatory reforms for the age of governance, 145, 151-54.
15.Shapiro, C. (1998).” Exclusivity in network industries”. Geo. Mason L.
Rev., 7, 673.
16.Usman, S. M., Bukhari, F. A. S., Usman, M., Badulescu, D., & Sial, M.
S. (2019).” Does the role of media and founder’s past success mitigate
the problem of information asymmetry? Evidence from a UK
crowdfunding platform”. Sustainability, 11(3), 692.
Internet sites
17.Coté, John, (June 23, 2014), “SF Cracks Down on ‘MonkeyParking’
Mobile App,” http://blog.sfgate.com/cityinsider/2014/06/23/sf-cracksdown-on-street-parking-cash-apps.
18.https://www.autocheck.co.uk/
19.https://www.cinch.co.uk/vehicle/
20.https://www.techopedia.com/definition/3411/platform.
21.Madrigal, Alexis C., What Facebook Did to American Democracy:
https://www.theatlantic.com/technology/archive/2017/10/what-facebookdid/542502/
22.Rosenblat, Alex (2015), Uber’s Phantom Cabs,
https://www.vice.com/en_us/article/mgbz5a/ubers-phantom-cabs