IDEAS home Printed from https://ideas.repec.org/a/eee/indorg/v105y2026ics0167718726000160.html

Measuring markups with revenue data

Author

Listed:
  • Kirov, Ivan
  • Mengano, Paolo
  • Traina, James

Abstract

When output prices are unobserved, standard production-based markup estimators are biased and inconsistent because they are unable to distinguish whether firms have higher revenues due to higher prices or higher quantities. Building on work designed for competitive environments, we propose a novel method that solves this problem using only revenue data. We flexibly model markups as a specified function of observables and fixed effects, supporting a broad class of variable-markup frameworks. We explicitly adopt a Markovian revenue productivity process, a commonly implicit assumption in the literature. Our suggested two-step approach is simple in concept and implementation, requiring only common regression techniques.

Suggested Citation

  • Kirov, Ivan & Mengano, Paolo & Traina, James, 2026. "Measuring markups with revenue data," International Journal of Industrial Organization, Elsevier, vol. 105(C).
    • Handle: RePEc:eee:indorg:v:105:y:2026:i:c:s0167718726000160
    DOI: 10.1016/j.ijindorg.2026.103263
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0167718726000160
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijindorg.2026.103263?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:indorg:v:105:y:2026:i:c:s0167718726000160. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505551 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.