Using Natural Language Processing to Delineate Digital Markets
Abstract
Delineating relevant antitrust markets poses substantial challenges, particularly so in nascent, digital markets, where data on prices, quantities, and costs often are not available. This study evaluates a complementary approach using Natural Language Processing techniques along with business descriptions of relevant firms to define markets. Applying this method to a sample of start-up acquisitions, we find considerable overlap between our approach and expert assessments by the European Commission.