Abstract

IntroductionLarge corporations—from Apple to Volkswagen—are powerful; whereas their customers are much less powerful. But many observers believe that information and communication technologies are giving consumers weapons to level the playing field. Is this really true?From Theory to the Reality of Economic PowerTechnology and economic power share one characteristic: economic theory has long ignored them.Starting with the industrial revolution, technology has been the first driver of economic growth. But it is only a couple of centuries later that economic theory gave it the place it deserves—as an engine of economic cycles.In classical economic theory, economic power did not exist. Market mechanisms excluded it—many suppliers sell to many buyers without any mutual influence and without any say on price. The only exception was monopolies, and their power was evil.The emergence of the modern corporation, the multiplication of oligopolies, and the Depression were all needed to slowly dem