We study the gains from trade in a model with oligopolistic competition, heterogeneous firms and innovation, and provide a formula to decompose the mechanism. The new insight we provide is that market concentration can be a welfare-relevant feature of market power above and beyond markup...

Employing data on 3,943 banks from the EU-15 between 2013 and 2020, this paper empirically analyzes the relationship between banking market consolidation, market power and banking stability, separately for the loan and deposit market. We initially find that European banks follow a loss-leader...