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@article{Valletti:2020:10.4337/clpd.2019.02.06,
author = {Valletti, T and Hans, Z},
doi = {10.4337/clpd.2019.02.06},
journal = {Competition Law & Policy Debate},
pages = {40--49},
title = {Increasing market power and merger control},
url = {http://dx.doi.org/10.4337/clpd.2019.02.06},
volume = {5},
year = {2020}
}

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TY  - JOUR
AB  - A significantbody of empirical research has documented a structural increase in margins across  a  wide  range  of  industriesand  countries.1On  average, firms  enjoy appreciably greater  pricing  power today than  used  to  be  the  casein  prior  decades.2 Research also showed  that  this  increase  in mark-ups coincided with  a  decline in  the labour  share  of output,  higher aggregate concentration, larger corporate profitability, and a slump in business   dynamism   (as   measured   by indicators such  as   entry,   investment andinnovation).3 The  broader  phenomenon  of  increasedpricing  power  appears  largely  (though  not unanimously) accepted among researchers. Even so, there is substantial disputeabout its underlying  causesand  implications.Some  researchers  have  attributed recent margin trendsprimarily to   the growth of   so-called  “superstar  firms”—highly   profitablecompanies thathave successfully seized the opportunities generated by globalization and technological   change   (such   asdigitization   and   automation).4Others   have linked increasing mark-upsto  a  lack  of  competition, e.g., caused  by overly permissive  merger control.5 Since  our  earlier  workon  this topic,6 also antitrust practitioners and agency representatives have started to weigh in on the debate.7  Moreover, both the FTC and the OECD  have  held public hearings  on  market  power  and  concentrationto discuss  the significance of recent academic findingsfor competition policy.
AU  - Valletti,T
AU  - Hans,Z
DO  - 10.4337/clpd.2019.02.06
EP  - 49
PY  - 2020///
SN  - 2405-481X
SP  - 40
TI  - Increasing market power and merger control
T2  - Competition Law & Policy Debate
UR  - http://dx.doi.org/10.4337/clpd.2019.02.06
UR  - http://hdl.handle.net/10044/1/70923
VL  - 5
ER  -

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