This paper examines a homogeneous-good Bertrand-Edgeworth oligopoly model to explore the role of firm size and number in pricing. We consider the price impact of merger, break up, investment, divestment, entry and exit. A merger leads to higher prices only when it increases the size of the...

Why do export sales increasingly concentrate among a few "superstars"? This paper is the first to argue that the expansion of the Internet matters for this phenomenon. Using firm-level customs transaction data from 11 developing countries, we show that the spread of the internet steepens the...

Custom software is distinct from other types of capital in that it is non-rival—once a firm makes an investment in custom software, it can be used simultaneously across its many establishments. Using confidential US Census data, we document that while firms with more establishments are more...