Mertens, Matthias and Mottironi, Bernardo (2025) Do larger firms exert more market power? Markups and markdowns along the size distribution. Economics Letters, 255. ISSN 0165-1765
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Identification Number: 10.1016/j.econlet.2025.112500
Abstract
Combining financial statements with firm-level product prices, we find that larger firms exhibit lower markups, although they are overcompensated by substantially higher wage markdowns. We explain our divergence from prior results by highlighting how labor market power affects markup estimates.
| Item Type: | Article |
|---|---|
| Additional Information: | © 2025 Elsevier B.V. |
| Divisions: | LSE |
| Subjects: | H Social Sciences > HG Finance H Social Sciences > HB Economic Theory |
| Date Deposited: | 30 Jul 2025 09:03 |
| Last Modified: | 30 Jul 2025 16:03 |
| URI: | http://eprints.lse.ac.uk/id/eprint/128958 |
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