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Imperfect Competition in Firm-to-Firm Trade

Volume: 20, Issue: 5, Pages: 1933 - 1970
Published: Mar 14, 2022
Abstract
This paper studies the implications of imperfect competition in firm-to-firm trade. Exploiting data on the universe of sales relationships between Belgian firms, we document that firms’ markups increase in the average input shares among their buyers. Motivated by this fact, we develop and estimate a model where firms charge buyer–supplier-specific markups that depend on the bilateral input shares. We find markup dispersion within firms across...
Paper Details
Title
Imperfect Competition in Firm-to-Firm Trade
Published Date
Mar 14, 2022
Volume
20
Issue
5
Pages
1933 - 1970
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