In these, most of the expenses are in the form of upfront
As Nobel Prize winning economist Jean Tirole has demonstrated, Chicago antitrust theory is ill equipped to deal with high tech industries, which naturally tend toward winner take all competition. In these, most of the expenses are in the form of upfront investments, such as software (think Apple and Microsoft), meaning that the cost of serving additional customers is close to zero. Customers naturally gravitate to the platform with the largest network of customers (think Facebook).
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