This paper develops a theory of oligopoly and markups in general equilibrium. Firms compete in a network of product …

We develop a method to measure the incidence of monopolistic markup distortions in the global economy. Using semi …-parametric formulas, we measure how trade modifies the deadweight loss of markups through two channels: (1) trade-induced change in markup … zero-sum welfare effects similar to implicit tariffs that tilt the terms of trade in favor of countries exporting high-markup …