The monopoly dilemma of digital platform economy from the perspective of economic law and the influence of innovation incentive mechanism Online publication date: Tue, 12-Sep-2023
by Jiemin Yin
International Journal of Knowledge-Based Development (IJKBD), Vol. 13, No. 2/3/4, 2023
Abstract: This study aims to analyze the monopoly status and regulatory dilemmas of nowadays digital platform economy from the perspective of law and economics. After a series of quantitative analyses, the results show that reductions in capital income taxes have a greater effect on the economic growth of digital platforms than other types of taxes. An increase in capital income taxation intensifies social welfare losses and has the greatest impact from the angle of social welfare losses. The study further explores the impact of changes in the overall tax burden on various aspects of the Chinese economy. Tax revenues are always negatively correlated with endogenous variables in the economy. The higher the tax rate, the lower the value of the endogenous variables. That provides some evidence for the effectiveness to manage the digital platform economy through innovation incentives, especially tax rate controls.
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