Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 1 of 1
Full-Text Articles in Computer Law
Facebook, Welfare, And Natural Monopoly: A Quantitative Analysis Of Antitrust Remedies, Felix B. Chang, Seth Benzell
Facebook, Welfare, And Natural Monopoly: A Quantitative Analysis Of Antitrust Remedies, Felix B. Chang, Seth Benzell
Faculty Articles and Other Publications
This Article advances a novel theoretical model for assessing policy interventions against Facebook. As prosecutors barrel forward against digital platforms, soon it will fall upon courts and, eventually, regulators to devise remedies. We argue that any sensible solution must include quantification of the welfare effects on the platform’s various constituents. Our model prioritizes the effects upon total societal welfare—or, in economists’ terms, social welfare. Applied to Facebook, the model calculates social welfare as the sum of four components: (i) consumer welfare; (ii) advertising profits; (iii) tax revenues; and (iv) the value of a large user base.
Drawing on surveys of …