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Mark-ups in the digital era

Author

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  • Sara Calligaris
  • Chiara Criscuolo
  • Luca Marcolin

Abstract

Relying on a novel dataset which combines balance sheet data on firms, patents, and industry-level proxies of technology for 25 countries in the period 2001-2014, we document an increase in mark-ups over time, mainly driven by firms in the top half of the mark-up distribution, and a significant and increasing "mark-up gap" between firms in digital intensive and less digital intensive industries. Second, we show that the intangible components of the digital transformation, matter above all others for firm mark-up, and that this is not explained by the industry's fixed-cost structure, concentration, openness to trade and product market regulation.

Suggested Citation

  • Sara Calligaris & Chiara Criscuolo & Luca Marcolin, 2024. "Mark-ups in the digital era," CEP Discussion Papers dp1994, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepdps:dp1994
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    References listed on IDEAS

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    Keywords

    mark-ups; market power; digitalisation; intangible assets;
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