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Explanations

Long Read: Do companies have too much monopoly power?

Geoff Riley

27th July 2018

A new paper from Princeton economist Jan De Loecker finds that the mark ups (profit margins) of the world's largest global companies has been increasing raising fresh concerns about the impact on consumer welfare especially given the background of endemic corporate tax avoidance.

The research finds that while global average markups were less than 10% in 1980, they were at almost 60% in 2016.

Click below for some links to related features on monopoly power in markets

Geoff Riley

Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.

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