Measuring the reality of market power
A corporate giant’s ability to control the market price of goods or services refers to its market power. In theory, it’s how this company maintains prices above marginal costs by either increasing or constraining supply or demand. In practice, it can limit output, stifle innovation and create inefficiencies in the allocation of production. Market power can have both microeconomic and macroeconomic implications. The EU-funded M-POWER project will investigate the extent and effect of market power across sectors, regions and countries. To quantify the effects, the project will use new techniques to document mark-ups across firms in the entire economy and analyse the implications for both producers and consumers.
Fields of science
Funding SchemeERC-COG - Consolidator Grant
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