The premise of a market economy is that broad-based economic gains come from a well-functioning market. Yet there is evidence that growing economic inequality is undermining our society’s ability to act collectively in pursuit of the nation’s welfare. When stakeholders who comprise economic systems subvert institutions for their own gain, the economy loses. If markets are becoming less competitive, the resulting increase in monopoly power could be contributing to these problems.
New data-driven research provides more evidence that markets are increasingly concentrated and that, in many cases, this is indicative of a reduction in competition. Markups, the traditional measure of monopoly power, are growing. Investment and new business start-ups have been falling steadily even as corporate profits are rising. At the same time, labor income as a share of national income is falling. Does the economy suffer from a monopoly problem and, if so, why, and what are the larger implications?
We are interested in research from an aggregate perspective, which has been common in the macroeconomic and labor literatures, as well as sectoral analysis that has been the focus of industrial organization literatures.
- The causes of increased concentration
- Consequences of concentration for productivity, investment, and economic growth
- Consequences of concentration for labor markets and power
Explore the Grants We've Awarded
Geospatial Heterogeneity in Inflation: A Market Concentration Story
Tracking Hospital Mergers and Understanding Which Markets are Changing
The Role of Regulations in the Development of Labor Market Power: Evidence from Clean Air Act’s New Source Review Permit Program
Concentration and Racial Equity in Meat Processing
Exploring disparate impact in online retailing
Startups’ Common Ownership and Competition in Technology Markets
New York UniversityLearn More
Princeton UniversityLearn More
University Of UtahLearn More
José Ignacio Cuesta
Stanford UniversityLearn More
University of California, BerkeleyLearn More