the "competition effect", by which desired price markups and inflation decrease when entry rises. We find that a 1 percent … increase in the number of competitors lowers desired markups by 0.18 percent. Most of the cyclical variability in inflation is … driven by markup fluctuations due to sticky prices or exogenous shocks rather than endogenous changes in desired markups. …

This paper analyzes the effects of mergers and acquisitions on the markups of non-merging rival firms across a broad … production functions, we estimate markups as a measure of market power. Our results indicate that rivals significantly increase … their markups after mergers relative to a matched control group. Consistent with increases in market power, the effects are …

This paper develops a theory of oligopoly and markups in general equilibrium. Firms compete in a network of product … corporations in the USA, using publicly-available data. Using the model, I compute firm-level markups and decompose them into: 1) a …