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Titel
Do larger firms exert more market power? : markups and markdowns along the size distribution / Matthias Mertens, Bernardo Mottironi ; editor: Halle Institute for Economic Research (IWH) - Member of the Leibniz Association
Weitere Titel
Do larger firms have higher markups?
VerfasserMertens, Matthias ; Mottironi, Bernardo
KörperschaftLeibniz-Institut für Wirtschaftsforschung Halle
ErschienenHalle (Saale), Germany : Halle Institute for Economic Research (IWH) - Member of the Leibniz Association, [2023?]
Ausgabe
This version: September 18, 2023
Umfang1 Online-Ressource (III, 55 Seiten, 3,31 MB) : Diagramme
Anmerkung
Literaturverzeichnis: Seite 31-36, Seite 55
SpracheEnglisch
SerieIWH-CompNet discussion papers ; 2023, no. 1 (January 2023) [rev.]
Schlagwörterfirm size / markdowns / market power / markups
URNurn:nbn:de:gbv:3:2-991975 
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Do larger firms exert more market power? [3.31 mb]
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Keywords
Several models posit a positive cross-sectional correlation between markups and firm size which characterizes misallocation factor shares and gains from trade. Accounting for labor market power in markup estimation we find instead that larger firms have lower product markups but higher wage markdowns. The negative markup-size correlation turns positive when conditioning on markdowns suggesting interactions between product and labor market power. Our findings are robust to common criticism (e.g. price bias non-neutral technology) and hold across 19 European countries. We discuss possible mechanisms and resulting implications highlighting the importance of studying input and output market power in a unified framework.