The Increase in Turbulence and Market Power
Bibliographic Data
| ID | 9710926 |
|---|---|
| Authors | Agnieszka Markiewicz (0000-0001-7708-9523, Erasmus University Rotterdam & Tinbergen Institute), Riccardo Silvestrini (University of Naples Federico II & Centre for Studies in Economics and Finance (CSEF)) |
| Year | 2025 |
| Publication date | 2025-07-15 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (PUBLISHER • GB) |
| DOI | 10.1093/ej/ueaf059 |
| OpenAlex | W4412427027 |
| Language | EN |
| References cited | 39 |
In recent decades, market power has been on the rise, although its increase varies between sectors. We argue that this heterogeneity can be partially attributed to sector-specific differences in turbulence dynamics. Turbulence, a measure of firms’ churn over the revenue productivity distribution, reflects firms’ ability to sustain their productivity over time. In a dynamic oligopolistic competition model, an increase in turbulence accelerates the turnover of leaders, and triggers reallocation of market shares towards high-markup firms. The predictions of our model are consistent with empirical evidence from both the United States and Europe
Economics · Mechanics · Physics · Power (physics · Thermodynamics · Turbulence · Economic theories and models
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The Rise of Market Power and the Macroeconomic Implications
The Fall of the Labor Share and the Rise of Superstar Firms
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Diverging Trends in Aggregate and Firm Volatility
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Perspectives on the Labor Share
| Highly cited | No |
|---|