The Impact of SuperStar Firms on Competition & Competitiveness in the UK & Europe

点击翻译按钮获取中文摘要

There have been a number of periods in history in which firms have held tremendous power over individuals, but an argument could be made that none have ever had as much influence as some so called 'superstar firms' (SSFs) have today. Recent developments in technology, including automation, machine learning and algorithmic data processing as well as greater precision and scalability in robotics, combined with increasing globalisation and general interdependence between economies, have created a world in which the best firm in a market can completely dominate the entire world's supply of a product or service. Two of the clearest examples of this kind of dominance are Uber and Google. My thesis will expand upon the work of Autor et al and examine the Superstar firm model across three broad sections. The first will be a re-estimation of Autor et al's methodology using a more disaggregated, and therefore arguably more accurate, measure of importer concentration/competition. The second will cover a number of competition authority (CA) case studies to see how SSFs have already been accused of abusing their position, where others might be doing the same, and the effectiveness of punishments by CAs against SSFs. The third section will investigate productivity within markets in light of SSFs. This will cover how labour is used differently within SSFs and how, as more market share is gained by an SSF, the overall ratio of capital to labour input within a market changes. If we continue to make progress in the fields of automation and artificial intelligence, it will benefit these Superstar firms the most, at the expense of labour. This third section may provide an insight into the potential harms of these developments to workers across the world. The SSF model was only put forward in 2017 so this is a relatively new field but it has already garnered great interest. In a time in which many are questioning the merits of globalisation and technological progress it is important we investigate those who have benefited the most. My research will shed light on what has happened to the re-distribution of resources and, as in Autor et a, could explain the fall in labour's share of GDP seen in many developed countries.