A power in competition policy

Typical measures of market power in economic theory focus on classical pricing markets of homogeneous goods, where a firm's primary action is choosing a price to sell the good or the quantity of This simple relationship allows one to directly reason about participant welfare and profit of firms. In addition, not all participants with accounts on a digital platform are equally active and inactive participants should not factor into the market power of a firm the same way active participants do. Participant behavior plays a critical role in digital market places. As outlined by the Stigler Committee [2019], "the findings from behavioral economics demonstrate an under-recognized market power held Thaler and Sunstein, 2008; Fogg, 2002]--can be exploited by firms in digital economies, but do not factor into traditional measures of market power. Performative power focuses on measuring power rather than harm.