The Economics of Digital Services
Knight Foundation Funds A New Initiative on the Economics of Digital Services: Providing a Foundation for Evidence-Based Decision-Making
The Center for Technology, Innovation and Competition (CTIC) has secured a $350,000 grant from the John S. and James L. Knight Foundation to provide a basis for evidence-based decisionmaking regarding the economics of digital services. The goal is to provide a better understanding of technology companies whose business models are predicated on access to user data. The resulting research should provide a stronger foundation for the proper scope of antitrust enforcement and regulatory intervention. The project is led by Christopher Yoo, John H. Chestnut Professor of Law, Communication, and Computer & Information Science and CTIC’s founding director and Rakesh Vohra, George A. Weiss and Lydia Bravo Weiss Professor of Economics and Engineering and founding co-director of the Warren Center for Network & Data Sciences. It explores two key areas: the first is the tendency of digital services companies to engage in new forms of vertical integration and the second is digital platforms’ greater reliance on algorithms and data.