If a small number of firms have a large combined market share in a properly defined market, it is strong evidence that those firms have substantial market power.
Responses
Responses weighted by each expert's confidence
Participant | University | Vote | Confidence | Bio/Vote History |
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Daron Acemoglu |
MIT | Bio/Vote History | ||
Yes of course, modern IO has warned us against this. But if it looks, walks and quacks like a duck, it is most probably a duck.
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Alberto Alesina |
Harvard | Bio/Vote History | ||
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Joseph Altonji |
Yale | Bio/Vote History | ||
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Alan Auerbach |
Berkeley | Bio/Vote History | ||
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David Autor |
MIT | Bio/Vote History | ||
It is a strong prima facie case, but it is not proof of that case, nor does it mean that they are necessarily exercising that power!
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Katherine Baicker |
University of Chicago | Bio/Vote History | ||
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Abhijit Banerjee |
MIT | Bio/Vote History | ||
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Marianne Bertrand |
Chicago | Bio/Vote History | ||
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Markus Brunnermeier |
Princeton | Bio/Vote History | ||
Depends on the nature of competition. Bertrand competition can be more fierce than Cournot competition in this case.
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Raj Chetty |
Harvard | Did Not Answer | Bio/Vote History | |
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Judith Chevalier |
Yale | Bio/Vote History | ||
The number of firms is both an outcome of market competitiveness and an driver of market competitiveness.
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David Cutler |
Harvard | Bio/Vote History | ||
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Angus Deaton |
Princeton | Did Not Answer | Bio/Vote History | |
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Darrell Duffie |
Stanford | Bio/Vote History | ||
Even with two vendors, market power depends on customer switching costs and delays.
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Aaron Edlin |
Berkeley | Did Not Answer | Bio/Vote History | |
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Barry Eichengreen |
Berkeley | Bio/Vote History | ||
Agree at a very low level of confidence owing to the difficulty of properly defining a market.
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Liran Einav |
Stanford | Bio/Vote History | ||
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Ray Fair |
Yale | Bio/Vote History | ||
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Amy Finkelstein |
MIT | Did Not Answer | Bio/Vote History | |
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Pinelopi Goldberg |
Yale | Bio/Vote History | ||
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Austan Goolsbee |
Chicago | Bio/Vote History | ||
It’s not a guarantee but it’s certainly a risky indicator
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Michael Greenstone |
University of Chicago | Bio/Vote History | ||
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Robert Hall |
Stanford | Bio/Vote History | ||
There is little empirical support for a strong relation--rather, it's a weaker relation.
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Oliver Hart |
Harvard | Bio/Vote History | ||
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Bengt Holmström |
MIT | Bio/Vote History | ||
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Caroline Hoxby |
Stanford | Did Not Answer | Bio/Vote History | |
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Hilary Hoynes |
Berkeley | Bio/Vote History | ||
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Kenneth Judd |
Stanford | Bio/Vote History | ||
They may have market power if they use strategies that implement tacit collusion, but other equilibria do not display market power.
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Steven Kaplan |
Chicago Booth | Bio/Vote History | ||
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Anil Kashyap |
Chicago Booth | Bio/Vote History | ||
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Pete Klenow |
Stanford | Bio/Vote History | ||
Too many exceptions to be a rule.
-see background information here |
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Jonathan Levin |
Stanford | Bio/Vote History | ||
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Eric Maskin |
Harvard | Bio/Vote History | ||
If a firm has a large market share, then the demand curve it faces is likely to be down-sloping.
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William Nordhaus |
Yale | Did Not Answer | Bio/Vote History | |
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Emmanuel Saez |
Berkeley | Bio/Vote History | ||
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Larry Samuelson |
Yale | Bio/Vote History | ||
"Large combined market share" is a crude and elusive measure, and is not definitive, but it provides does provide strong evidence.
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José Scheinkman |
Columbia University | Did Not Answer | Bio/Vote History | |
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Richard Schmalensee |
MIT | Bio/Vote History | ||
"Strong" & "substantial" over-state, & "properly-defined" is critical. There is generally market power in markets dominated by a few firms.
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Carl Shapiro |
Berkeley | Did Not Answer | Bio/Vote History | |
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Robert Shimer |
University of Chicago | Bio/Vote History | ||
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James Stock |
Harvard | Bio/Vote History | ||
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Richard Thaler |
Chicago Booth | Bio/Vote History | ||
Always one stray word. “Strong”?
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Christopher Udry |
Northwestern | Did Not Answer | Bio/Vote History | |
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