The Entrepreneurial State and the Platform Economy

Abstract

We critique the view of the platform economy as implying a necessary regulation of big tech in the form outlined in “the entrepreneurial state.” The basis for this view is a combination of fallacy, error, and political choice. The combinations of these factors drive toward a conclusion that the platform economy adds little or no value to the economy and subsequently should be heavily regulated, and moreover, regulated in an internationally coordinated manner. We instead argue that the rise of large platform firms is exactly what we expect to observe in the transition from an industrial to a digital economy.