Rising Corporate Market Power: Emerging Policy Issues

Wenjie Chen, Federico Diez, Romain Duval, Philipp Engler, Jiayue Fan, Chiara Maggi, Marina Tavares, Daniel Schwarz, Ippei Shibata and Carolina Villegas-Sánchez
Authors registered in the RePEc Author Service: Ufuk Akcigit

No 2021/001, IMF Staff Discussion Notes from International Monetary Fund

Abstract: Corporate market power has risen in recent decades, and new estimates in this note suggest that the likely wave of small and medium-sized enterprise bankruptcies from the ongoing pandemic will further strengthen market concentration. Whether and how policymakers should address this issue is hotly debated. This note provides new evidence on the policy relevance of rising market power and highlights possible implications for the design of competition policy frameworks and macroeconomic policies.

Keywords: Market power; business dynamism; Mergers and acquisitions; competition policy; digital economy; monetary policy; acquiring firm; competition authorities; concentration ratio; analysis point; high-markup firm; growth rates decrease; labor markdown; competition authority; representative firm; computation firm; market concentration; price markup; Competition; Labor markets; Central bank policy rate; Global; market power entrenchment; C. market power; market power increase; B. market power; Eastern Europe (search for similar items in EconPapers)
Pages: 34
Date: 2021-03-15
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