Macroeconomic Effects of Market Structure Distortions

Flavien Moreau and Ludovic Panon

No 579, 2019 Meeting Papers from Society for Economic Dynamics

Abstract: This paper develops a quantitative framework with heterogenous firms and endogenous markups to assess the macroeconomic implications of sectoral distortions to market structure, namely the existence of cartels. The direct negative welfare impact of cartels is compounded by increases in non-colluders’ prices (umbrella pricing). We then build a dataset on firm- and sector-level collusive cases constructed from the textual analysis of two decades of antitrust decisions taken by the French Competition Authority that we combine with exhaustive administrative firm microdata to test the predictions of our model.

Date: 2019
New Economics Papers: this item is included in nep-com, nep-dge, nep-hme and nep-mac
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Persistent link: https://EconPapers.repec.org/RePEc:red:sed019:579

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