Francesco Decarolis, Gabriele Rovigatti, 12 September 2019

The concentration in the supply of online advertisement space among a few tech giants has led to their careful scrutiny by competition authorities in both the EU and the US, and some large fines for abuse of dominant position. This column discusses new evidence suggesting that, even without these policy interventions, the market is changing in ways that are reducing the ability of the ad space sellers to gain from their dominant position. Advertisers’ increasing delegation of their ad purchases to demand-side intermediaries has generated a countervailing buyer power capable of leading to marked reductions in online ad prices. 

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