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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. …
Persistent link: https://www.econbiz.de/10010391305
Market power on each side of a multisided platform, whether in the form of increasing prices or decreasing quality, is constrained by the risk of losing sales on the other sides. That tends to weaken market power on each side and encourages platforms to keep prices lower and quality higher than...
Persistent link: https://www.econbiz.de/10014128700
Contrary to mainstream opinion, suggesting that dominant online platforms compete on their own merits and that their abuse of the large-scale accumulation of data should fall under data or privacy laws, this article argues that competition law should investigate whether global platform...
Persistent link: https://www.econbiz.de/10013229288
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 …
Persistent link: https://www.econbiz.de/10012061779
Does greater product market competition improve external competitiveness and growth? This paper examines this question by using country-and firm-level data for a sample of 39 sub-Saharan African countries over 2000-17, as well as other emerging market economies and developing countries, and...
Persistent link: https://www.econbiz.de/10012177592
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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 …
Persistent link: https://www.econbiz.de/10013503368
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