Keeping market power under control
Some companies can successfully and very profitably raise the market price of their products or services without losing any customers to competitors. In economics, this is known as market power. The EU-funded MARKET POWER project will assess the causes and macroeconomic consequences of this phenomenon. It will investigate labour market dynamism, the decline of new startups and the stagnation of low-skilled wages in view of a recent increase in market power. The project will distinguish between the causes that inherently stem from market structure (antitrust enforcement and mergers) and those that result from technological change, such as intangible assets and network externalities. The findings will shed light on how to keep market power under control in order to remediate its macroeconomic consequences.
Call for proposal
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Funding SchemeERC-ADG - Advanced Grant