We consider the merits of the recent EU’s Digital Markets Act from the perspective of innovation and value creation. We conceptualize innovation as new interactions being created by the digital platform leading to ‘value creation’, in contrast to facilitating existing interactions or...

The Digital Markets Act makes clear choices about important tradeoffs in value to constrain the arbitrary power and dominance of gatekeepers over digital markets and guarantee a more equitable distribution of value with business users. We argue that the extent those objectives will be realized...

In November 2020, Apple announced a reduction in the royalty rate applied to small app developers from 30% to 15%. In March 2021, Google followed suit committing to a similar reform. We analyze the implications of these reforms for the distribution of app quality with a stylized model that...