Search Results - subject:"IMPERFECT COMPETITION"

Large Firms, Consumer Heterogeneity and the Rising Share of Profits

Feenstra, Robert C.; Macedoni, Luca; Xu, Mingzhi - National Bureau of Economic Research - 2022

We examine the relationship between large firms and the rising profit share in a model that features oligopolistic competition and consumer heterogeneity. Conditional on the sales distribution, the presence of consumer heterogeneity increases the profit share because it increases firm-level...

Persistent link: https://www.econbiz.de/10012814421

The more the merrier? On the optimality of market size restrictions

von Negenborn, Colin - In: Review of Economic Design 27 (2022) 3, pp. 603-634

This paper provides a novel rationale for the regulation of market size when heterogeneous firms compete. A regulator seeks to maximize total welfare by choosing the number of firms allowed to enter the market, e.g. by issuing a certain number of licenses. Opening up the market for more firms...

Persistent link: https://www.econbiz.de/10015325456

Are Technology Improvements Contractionary?

Basu, Susanto; Fernald, John G.; Kimball, Miles S. - 2022

, non-constant returns and imperfect competition, and aggregation effects. On impact, when technology improves, input use …

Persistent link: https://www.econbiz.de/10013288997

Insurance Monopoly and Imperfect Competition when Insurers Affect Risk

Avraham, Ronen; Gilo, David - 2022

We study insurers’ behavior under monopoly and Cournot duopoly when they canaffect the probability or magnitude of harm from accidents. The way consumers’risk aversion changes with wealth and the way risk affects the slope of the demandfunction determine whether Cournot duopolists increase...

Persistent link: https://www.econbiz.de/10013297973

Imperfect Competition and Rents in Labor and Product Markets : The Case of the Construction Industry

Kroft, Kory; Luo, Yao; Mogstad, Magne; Setzler, Bradley - 2022

We quantify the importance of imperfect competition in the US construction industry by estimating the size of rents … government projects procured through auctions. We find evidence of considerable wage- and price-setting power. This imperfect … competition creates sizable rents, three-fourths of which is captured by the firms. The incentives of firms to mark down wages and …

Persistent link: https://www.econbiz.de/10013299171

Advertising Pricing Models in Media Markets : Lump-Sum versus Per-Consumer Charges

Dietl, Helmut; Lang, Markus; Lin, Panlang - 2022

This paper develops a model of asymmetric competition between a pay and a free media platform. The pay media platform generates revenues from media consumers through subscription fees, while the free media platform generates revenues from charging advertisers either on a lump-sum basis (regime...

Persistent link: https://www.econbiz.de/10013299224

Money, credit and imperfect competition among banks

Head, Allen; Kam, Timothy; Ng, Sam; Pan, Guangqian - 2022

Using micro-level data for the U.S., we provide new evidence - at national and state levels - of a positive (negative) relationship between the standard deviation (coefficient of variation) and the average in bank lending-rate markups. In a quantitative theory consistent with these empirical...

Persistent link: https://www.econbiz.de/10013301823

Market power and wage inequality

Deb, Shubhdeep; Eeckhout, Jan; Patel, Aseem; Warren, … - 2022

Persistent link: https://www.econbiz.de/10013380622

Aggregate properties of open economy models with expanding varieties

Bhattarai, Saroj; Kucheryavyy, Konstantin - 2022

We present a unified dynamic framework to study the interconnections between international trade and business cycle models. We prove an aggregate equivalence between a competitive, representative firm model that has aggregate production externalities and dynamic trade models that feature...

Persistent link: https://www.econbiz.de/10013332104

Entry, Variable Markups, and Business Cycles

Gamber, William L. - 2022

The creation of new businesses declines in recessions. In this paper, I study the effects of pro-cyclical business formation on aggregate employment in a general equilibrium model of firm dynamics. The key features of the model are that the elasticity of demand faced by firms falls with their...

Persistent link: https://www.econbiz.de/10013309613