Arbeitspapier
Data-driven mergers and personalization
Recent years have seen growing cases of data-driven tech mergers such as Google/Fitbit, inwhich a dominant digital platform acquires a relatively small rm possessing a large volumeof consumer data. The digital platform can consolidate the consumer data with its existingdata set from other services and use it for personalization in related markets. We developa theoretical model to examine the impact of such mergers across the two markets that arerelated through a consumption synergy. The merger links the markets for data collectionand data application, through which the digital platform can leverage its market powerand hurt competitors in both markets. Personalization can lead to exploitation of someconsumers in the market for data application. But insofar as competitors remain active, themerger increases total consumer surplus in both markets by intensifying competition. Whenthe consumption synergy is large enough, the merger can result in monopolization of bothmarkets, leading to further consumer harm when stand-alone competitors exit in the longrun. Thus there is a trade-off where potential dynamic costs can outweigh static bene ts.We also discuss policy implications by considering various merger remedies.
- Language
-
Englisch
- Bibliographic citation
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Series: ISER Discussion Paper ; No. 1108
- Classification
-
Wirtschaft
Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
Oligopoly and Other Imperfect Markets
Monopolization; Horizontal Anticompetitive Practices
Antitrust Law
- Subject
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big data
personalization
tech mergers
- Event
-
Geistige Schöpfung
- (who)
-
Chen, Zhijun
Choe, Chongwoo
Cong, Jiajia
Matsushima, Noriaki
- Event
-
Veröffentlichung
- (who)
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Osaka University, Institute of Social and Economic Research (ISER)
- (where)
-
Osaka
- (when)
-
2020
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Chen, Zhijun
- Choe, Chongwoo
- Cong, Jiajia
- Matsushima, Noriaki
- Osaka University, Institute of Social and Economic Research (ISER)
Time of origin
- 2020
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