Platform Liability and Innovation

Doh-Shin Jeon, Yassine Lefouili and Leonardo Madio

No 9984, CESifo Working Paper Series from CESifo

Abstract: We study a platformâs incentives to delist IP-infringing products and the effects of holding the platform liable for the presence of such products on innovation and consumer welfare. For a given number of buyers, platform liability increases innovation by reducing the competitive pressure faced by innovative products. However, there can be a misalignment of interests between innovators and buyers. Furthermore, platform liability can have unintended consequences, which overturn the intended effect on innovation. Platform liability tends to increase (decrease) innovation and consumer welfare when the elasticity of participation of innovators is high (low) and that of buyers is low (high).

Keywords: platform; liability; intellectual property; innovation (search for similar items in EconPapers)
JEL-codes: K13 K40 K42 L13 L22 L86 (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-com, nep-ind, nep-ino, nep-law, nep-mic and nep-pay
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Platform Liability and Innovation (2024)
Working Paper: Platform Liability and Innovation (2022)
Working Paper: Platform Liability and Innovation (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_9984

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