Fifteen years ago, MySpace was the dominant social networking platform globally, commanding over 70% of social media traffic. Today, MySpace has shrunk to insignificance, superseded by Meta (Facebook, Instagram), which itself now faces intense competitive pressure from newer, algorithmically-driven platforms like TikTok.
Evaluate the view that antitrust regulation and competition policy are unnecessary in digital platform markets, as rapid technological innovation and 'creative destruction' will naturally dismantle dominant firms over time.
378 exam-style questions on AQA A Level Economics 1.8 The market mechanism, market failure and government intervention in markets, covering 1.8.1 How markets and prices allocate resources, 1.8.2 The meaning of market failure, 1.8.3 Public goods, private goods and quasi-public goods, 1.8.4 Positive and negative externalities in consumption and production, 1.8.5 Merit and demerit goods, 1.8.6 Market imperfections, 1.8.7 Competition policy (A-level only), 1.8.8 Public ownership, privatisation, regulation and deregulation of markets (A-level only), 1.8.9 Government intervention in markets, and 1.8.10 Government failure. Each one has a worked solution and a mark scheme showing where the marks go.