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The Role of Digitalization in Economic Regulation
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How does digitalization affect market structure?
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💡 Explanation:
The impact of digitalization on market structure is not uniform across industries and markets. In some cases, digitalization can lead to increased concentration and market power, while in others it can promote competition and market contestability. The specific effects depend on factors such as the nature of the industry, the characteristics of the digital technologies being adopted, and the regulatory environment.