Estimating markups has a long tradition in industrial organization and international trade. Economists and policy … by markups. The empirical methods that were developed in empirical industrial organization often rely on the availability … detailed data, but still need an assessment of whether changes in the operating environment of firms had an impact on markups …

Researchers typically invoke theoretical assumptions to estimate mark-ups. Instead, we directly obtain mark-ups by … surveying Pakistani soccer-ball producers. We document six facts: (1) Mark-ups are more dispersed than costs; (2) Mark-ups and … increase with size because larger firms use higher-quality inputs; (5) Larger firms charge higher mark-ups because they have …

firm's marginal production costs. We test the theory by exploiting the opening of a high-speed (Shinkansen) train line in …