Quantifying Market Power and Business Dynamism

  title={Quantifying Market Power and Business Dynamism},
  author={Jan De Loecker and Jan Eeckhout and Simon Mongey},
We propose a general equilibrium model with oligopolistic output markets where two channels can cause a change in market power: (i) technology, via changes to productivity shocks and the cost of entry, (ii) market structure, via changes to the number of potential competitors. First, we disentangle these narratives by matching data on markups, labor reallocation and costs, finding that both channels are necessary to account for the data. Second, we show that changes in technology and market… 
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Macroeconomics and Market Power: Context, Implications, and Open Questions
  • C. Syverson
  • Economics
    Journal of Economic Perspectives
  • 2019
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