Pricing Decisions and Competitive Conduct Across Manufacturing Sectors: Evidence from 19 European Union Manufacturing Industries

This paper investigates the pricing decisions across the manufacturing sectors of 19 EU countries over 1995–2014. The markup formulation of De Loecker and Warzynski (Am Econ Rev 102(6):2437–2471, 2012) is employed in order to estimate the price–cost margin of 10 2-digit NACE Rev.2 level manufacturing sectors and conclude whether the selling price of the final product exceeds the marginal cost of production. Subsequently, the pricing decisions of...