The New Industrial Organization: Ecosystem Competition

This paper characterizes a new industrial organization framework for analyzing ecosystem formation and competition by recognizing the Schumpeterian force of creative destruction. Economists’ profit maximization is replaced Welfare Enhancing (WEF)as more pragmatic realistic characterization reality. Consumers are not fish in ocean waiting to be preyed upon; they have free choice broad lifestyle choices. The supply demand still relevant even though theoretical sense that it has been technically crafted economists may not. Firms as epistemic communities fitting behavioral assumption can pragmatically applied. By using graphs examples, three types ecosystems discussed, each sharing commonality data management driver its respective ecosystem. first two management, coupled with pricing, bundling, various conducts, help promote welfare-enhancing growth their an innocuous manner. third type electrifying component resembling features “two-sided” markets require Antitrust regulation. key difference between could lock specific investment productivity less than ideal optimal, thus reducing welfare rather enhancing welfare.