Nicolas Petit @competitionprof.bsky.social · 24/12/2024Friends, General Motors exits the robotaxi market, and planet antitrust stays silent??? Here are three overlooked teachings of that story 1/N 111
Nicolas Petit @competitionprof.bsky.social · 24/12/2024First, firms acquire and shut down others, but these moves are not necessarily 'killer acquisitions.' Here, GM acquired Cruise in 2016, only to shut it down 8 years later due to the high costs of growing a robotaxi business 2/N 100
Nicolas Petit @competitionprof.bsky.social · 24/12/2024Second, robotaxis, like GenAI, are capital-intensive. The competitive selection effect isn't primarily driven by increasing returns to production or economies of scale, but by capital markets' caution twds risky bets. Failure to get this can lead to misguided interventions. 3/N 100
