AI and competitive dynamics in downstream markets

2025

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This paper examines how AI adoption reshapes competition in downstream markets, exploring both opportunities for enhanced competition and emerging risks.

* Analyzes mechanisms through which AI can lower entry barriers, reduce costs, and support innovation.
* Highlights emerging risks such as data access issues, model restrictiveness, and potential for algorithmic collusion.
* Discusses enforcement, advocacy, and regulatory tools to preserve market contestability in AI-enabled markets.

Tags: Artificial Intelligence, Competition, Downstream Markets, Market Dynamics, OECD

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