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Concentration and Competition: Evidence from Europe and Implications for Policy

Author

Listed:
  • Gábor Koltay
  • Szabolcs Lorncz
  • Tommaso M. Valletti
Abstract
The paper provides new evidence on proxy indicators of market power for major European countries. The data shows moderately increasing average industry concentration over the last two decades, a considerably increasing proportion of high concentration industries, and an overall tendency towards oligopolistic structure. Estimates of aggregate profitability also show a sustained increase over the recent decades for European economies. While the academic and policy debate is not settled as to whether the causes of these trends are policy driven or reflect technological improvement, our findings suggest that competition policy is likely to face more challenges as large companies are becoming more common in more and more industries.

Suggested Citation

  • Gábor Koltay & Szabolcs Lorncz & Tommaso M. Valletti, 2022. "Concentration and Competition: Evidence from Europe and Implications for Policy," CESifo Working Paper Series 9640, CESifo.
    • Handle: RePEc:ces:ceswps:_9640
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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp9640.pdf
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Bailey, Andrew & Cesa-Bianchi, Ambrogio & Garofalo, Marco & Harrison, Richard & McLaren, Nick & Sajedi, Rana & Piton, Sophie, 2023. "Structural change, global R* and the missing-investment puzzle," Bank of England working papers 997, Bank of England.
    2. Emanuela Ciapanna & Sara Formai & Andrea Linarello & Gabriele Rovigatti, 2024. "Measuring market power: macro- and micro-evidence from Italy," Empirical Economics, Springer, vol. 67(6), pages 2677-2717, December.
    3. Christian Reiner & Christian Bellak, 2023. "Hat die ökonomische Macht von Unternehmen in Österreich zugenommen? Teil 2," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 49(2), pages 17-76.
    4. Christian Reiner & Christian Bellak, 2023. "Hat die ökonomische Macht von Unternehmen in Österreich zugenommen? Teil 1," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 49(1), pages 21-59.

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    More about this item

    Keywords

    mergers; antitrust; European Union; concentrations; industries;
    All these keywords.

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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