Friday, May 24, 2013

Platforms can tax externalities and generate costly signals

One thing that's great about platforms is that socially efficient, signal-generating Pigovian taxation like the kind proposed in this tweet is not a joke---you can actually do things like this, which may be one of the great advantages of markets mediated by a powerful third party.

1 comment:

  1. Yes, modern platforms definitely provide a broader range of mechanisms to enable interactions of agents, value co-creation, and economic exchange. Third party platform owners, like traditional rulers, bear enormous responsibility along with the unprecedented power they hold.