Product Differentiation and Oligopoly: A Network Approach

• 成果类型: Article
• 署名作者: Pellegrino, Bruno
• 署名单位: Columbia University; Leibniz Association; Ifo Institut
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20201425
• 发表日期: 2025
• 页码: 1170-1225
• 关键词: MARKET POWER; us industries; consolidation; origins; demand; prices; rise

摘要

I present a new theory of oligopoly and markups in general equilibrium, based on an innovative, scalable hedonic demand system, which I take to the data for the universe of US public firms. In my model, firms compete in a network of product market rivalries that emerge endogenously out of the characteristics of the products they supply. I estimate that consumer surplus is almost three times as large as profits; decompose firm-level markups into metrics of quality-adjusted productivity and market centrality; and analyze the extent, evolution, and drivers of monopoly power in the United States between 1995 and 2021. (JEL D21, D43, D85, G34, L13, L14)