Mark-ups in the digital era

Sara Calligaris, Chiara Criscuolo and Luca Marcolin

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

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.

Keywords: mark-ups; market power; digitalisation; intangible assets (search for similar items in EconPapers)
JEL-codes: D2 L1 L2 O33 (search for similar items in EconPapers)
Pages: 53 pages
Date: 2024-04-29
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