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Sales and markup dispersion : theory and empirics

Mrázová, Monika; Neary, J. Peter; Parenti, Mathieu - 2018

We derive exact conditions relating the distributions of firm productivity, sales, output, and markups to the form of demand in monopolistic competition. Applications include a new “CREMR” demand function (Constant Revenue Elasticity of Marginal Revenue): it is necessary and sufficient for...

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