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Is market power on the rise? Potential explanations and implications for competition

Alberta Ragno, Francesca Arduini and Nicole Rosenboom

Keywords: market power; empirical analysis of concentration; profit margin analysis; share of supply; labour share of income; competition policy

The suggestion that there has been a widespread reduction in competition across many industries has been widely discussed in recent years by academics, policymakers and the media. But what does the empirical evidence actually say, and what are potential causes and policy options? This article provides a critical assessment of the ever-growing evidence base and draws conclusions on potential policy responses.

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