Philippon asserts that growth in aggregate measures of market concentration since the early 2000s is largely attributable to the weakening of competition. Lower levels of competition, Philippon argues, are directly due to lax antitrust enforcement and barriers to market entry.
Rose argues that highly aggregated measures of concentration across industries, which are used in many of the most provocative studies, cannot be used to draw conclusions about concentration dynamics due to a host of methodological challenges. Instead, industry-level studies are necessary to accurately assess causal relationships.
AUSTAN GOOLSBEE is the Robert P. Gwinn Professor of Economics at the University of Chicago’s Booth School of Business where he has served on the faculty since 1995. Goolsbee previously served in Washington as the Chairman of the Council of Economic Advisers and a member of the President’s Cabinet and prior to that as Chief […]