1. Competition and Innovation in the Digital Environment Smart Cities Conference Prof. Michal S. Gal University of Haifa

2. Motivation Formative times Psychological effects Economic effects Three trends Fascinating and challenging issues

3. Lower Costs of production and supply Dream come true “Age of Abundance” or “Post-scarcity world” How? 3D printing, robotics, internet – Technologies “destroy existing systems and replace them with new ones” that will “increase living standards by lowering costs and improving quality

4. Why worry? Advancements will not bring what they can offer, due to strategic behavior – Unilateral – Multilateral “Artificial scarcity” by those that control the new technologies

5. Regulatory Issues Recognize transition and forces Rethink legal barriers Adjust existing tools Government-supported mavericks?

6. The Age of big data New and significant class of economic asset Improved technologies: collection, storage, mining, synthesizing and analysis “Data Religion” Big data intermediaries: compete over attention Data collection more active Internet of things psychological-research-based algorithms

7. Value? Unstructured data into information Advanced data science Important basis for decision-making Strategic and valuable asset

8. Entry barriers Markets not similar Four categories Relate to all characteristics Legal, practical, technological Determine market boundaries and competition

9. Regulatory Issues How to define dominance? Balance competing interests Balance effects on consumer (free) Do old concepts apply? Jurisdictional issues?

10. Example: Access Remedy Traditionally: FRAND access But… What should be shared? Time and length of access? Payment? Essentiality: Diseconomies of scale?

11. Algorithms and Robo-sellers Change the way we interact, communicate and trade Stucke and Ezrachi: “Sophisticated computers are central to the competitiveness of present and future markets.”

12. Potential effects? Reduced costs Increased oligopolistic coordination Stronger cartels Automated price algorithms

13. Regulatory Issues Recognize new forms of cartels Facilitating practices? Algorithm police??? Legality of surge prices

14. Conclusions Fascinating and important Past experiences not enough Need to set clear principles Otherwise: Collingridge Dilemma

15. Thank you! mgalresearch@gmail.com ssrn.com