Scale, market power and competition in a digital world Is bigger better?

This report assesses the impact of digitalisation on competition by examining the evolution of mark-ups and multifactor productivity (MFP) across firms of different sizes. It finds that size is positively related to mark-ups and that this relationship has strengthened over time. This trend has been...

Full description

Bibliographic Details
Main Author: McMahon, Michael
Other Authors: Calligaris, Sara, Doyle, Eleanor, Kinsella, Stephen
Format: eBook
Language:English
Published: Paris OECD Publishing 2021
Series:OECD Science, Technology and Industry Working Papers
Subjects:
Online Access:
Collection: OECD Books and Papers - Collection details see MPG.ReNa
Description
Summary:This report assesses the impact of digitalisation on competition by examining the evolution of mark-ups and multifactor productivity (MFP) across firms of different sizes. It finds that size is positively related to mark-ups and that this relationship has strengthened over time. This trend has been accompanied by an increase in the relative productivity advantage of larger firms and both changes are more pronounced in digital-intensive sectors, suggesting that digitalisation may be an underlying driver. Policy makers may need to consider appropriate responses if digital technologies affect larger and smaller firms in a heterogeneous manner
Physical Description:76 p