Mark-ups in the digital era

Calligaris, Sara, Criscuolo, Chiara ORCID: 0000-0002-0428-7884 and Marcolin, Luca (2024) Mark-ups in the digital era. CEP Discussion Papers (CEPDP1994). London School of Economics and Political Science. Centre for Economic Performance, London, UK.

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Abstract

Relying on a novel dataset which combines balance sheet data on firms, patents, and industry-level proxies of technology for 25 countries in the period 2001-2014, we document an increase in mark-ups over time, mainly driven by firms in the top half of the mark-up distribution, and a significant and increasing "mark-up gap" between firms in digital intensive and less digital intensive industries. Second, we show that the intangible components of the digital transformation, matter above all others for firm mark-up, and that this is not explained by the industry's fixed-cost structure, concentration, openness to trade and product market regulation.

Item Type:	Monograph (Discussion Paper)
Official URL:	https://cep.lse.ac.uk/_new/publications/discussion...
Additional Information:	© 2024 The Author(s)
Divisions:	Centre for Economic Performance
Subjects:	H Social Sciences > HC Economic History and Conditions
JEL classification:	D - Microeconomics > D2 - Production and Organizations L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O33 - Technological Change: Choices and Consequences; Diffusion Processes
Date Deposited:	06 Feb 2025 16:30
Last Modified:	06 Feb 2025 16:30
URI:	http://eprints.lse.ac.uk/id/eprint/126813

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