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Market Power and Innovation in the Intangible Economy
| datacite.isnewversionof.doi | 10.17863/CAM.38666 | |
| datacite.ispreviousversionof.doi | 10.17863/CAM.93419 | |
| dc.contributor.author | De Ridder, M. | |
| dc.date.accessioned | 2022-01-07T15:43:00Z | |
| dc.date.available | 2022-01-07T15:43:00Z | |
| dc.date.issued | 2019-03-25 | |
| dc.description.abstract | This paper offers a unified explanation for the slowdown of productivity growth, the decline in business dynamism and the rise of market power. Using a quantitative framework, I show that the rise of intangible inputs – such as software – can explain these trends. Intangibles reduce marginal costs and raise fixed costs, which gives firms with high-intangible adoption a competitive advantage, in turn deterring other firms from entering. I structurally estimate the model on French and U.S. micro data. After initially boosting productivity, the rise of intangibles causes a significant decline in productivity growth, consistent with the empirical trends observed since the mid-1990s. | |
| dc.identifier.doi | 10.17863/CAM.79759 | |
| dc.identifier.other | CWPE1931 | |
| dc.identifier.other | C-INET1908 | |
| dc.identifier.uri | https://www.repository.cam.ac.uk/handle/1810/332313 | |
| dc.language.iso | eng | |
| dc.publisher | Faculty of Economics, University of Cambridge | |
| dc.relation.ispartofseries | Cambridge Working Papers in Economics | |
| dc.relation.ispartofseries | Cambridge-INET Working Paper Series | |
| dc.rights | All Rights Reserved | |
| dc.rights.uri | https://www.rioxx.net/licenses/all-rights-reserved/ | |
| dc.subject | Productivity | |
| dc.subject | Growth | |
| dc.subject | Business Dynamism | |
| dc.subject | Intangible Inputs | |
| dc.subject | Market Power | |
| dc.title | Market Power and Innovation in the Intangible Economy | |
| dc.type | Working Paper | |
| rioxxterms.version | AO |