Staff Discussion Notes

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Format: Chicago

Wenjie Chen, Federico J Diez, Romain A Duval, Philipp Engler, Jiayue Fan, Chiara Maggi, Marina Mendes Tavares, Daniel A Schwarz, Ippei Shibata, and Carolina Villegas-Sánchez. Rising Corporate Market Power: Emerging Policy Issues, (USA: International Monetary Fund, 2021) accessed December 3, 2024

Disclaimer: This Staff Discussion Note represents the views of the authors and does not necessarily represent IMF views or IMF policy. The views expressed herein should be attributed to the authors and not to the IMF, its Executive Board, or its management. Staff Discussion Notes are published to elicit comments and to further debate.

Summary

Corporate market power has risen in recent decades, and new estimates in this note suggest that the likely wave of small and medium-sized enterprise bankruptcies from the ongoing pandemic will further strengthen market concentration. Whether and how policymakers should address this issue is hotly debated. This note provides new evidence on the policy relevance of rising market power and highlights possible implications for the design of competition policy frameworks and macroeconomic policies.

Subject: Business environment, Central bank policy rate, Competition, Digital economy, Economic sectors, Financial markets, Financial services, Labor, Labor markets, Market competitions, Monetary policy

Keywords: Acquiring firm, Analysis point, B. market power, Business dynamism, C. market power, Central bank policy rate, Competition, Competition authorities, Competition authority, Competition policy, Computation firm, Concentration ratio, Digital economy, Eastern Europe, Global, Growth rates decrease, High-markup firm, Labor markdown, Labor markets, Market concentration, Market power, Market power entrenchment, Market power increase, Mergers and acquisitions, Monetary policy, Price markup, Representative firm

Publication Details

  • Pages:

    34

  • Volume:

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  • DOI:

    ---

  • Issue:

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  • Series:

    Staff Discussion Notes No. 2021/001

  • Stock No:

    SDNEA2021001

  • ISBN:

    9781513512082

  • ISSN:

    2617-6750