The Rise of the Platform Business Model and the Transformation of Twenty-First-Century Capitalism

Abstract

This article explores the changing nature of twenty-first-century capitalism with an emphasis on illuminating the political coalitions and institutional conditions that support and sustain it. Most of the existing literature attributes the changing nature of the firm to developments in markets and technology. By contrast, this article emphasizes the political forces that have driven the transformation of the twentieth-century consolidated firm through the firm as a “network of contracts” and toward the platform firm. Moreover, situating the United States in a comparative perspective highlights the distinctive ways US political-economic institutions have facilitated that transformation and exacerbated the associated inequalities.