In this paper we show that when a monopolist incurs certain costs for servicing or maintaining its customer-base, price … booms each customer on average will purchase more output and the costs of servicing clients are spread across a larger … reducing markups. We also find evidence on UK data that industries with higher customer-care costs tend to have a higher degree …

This paper develops a general theory of aggregation in inefficient economies. We provide non-parametric formulas for …%, increasing the economy-wide cost of monopoly distortions by two orders of magnitude compared to the famous 0.1% estimate by …

by about 20%, increasing the economywide cost of monopoly distortions by two orders of magnitude compared to the famous 0 …

Under the production approach to markup estimation, the markup is the output elasticity of any variable input divided …

We develop a structural framework that allows us to quantify the evolution of aggregate bilateral trade costs and … costs have fallen by 3.1% per year on average, we find a strong negative correlation between observed trade cost and markup …