Huang, Hanwei; Manova, Kalina; Perelló, Oscar; Pisch, Frank - 2026
How do global production networks and market structure interact to shape the welfare effects of trade and competition … policy? We develop a model with two-sided firm heterogeneity, matching frictions, and imperfect supplier competition. More … productive buyers match with more suppliers, inducing tougher competition among them, lower input costs, and higher profits …