Economic Indicators 

When competition doesn't work

Chris Dillow

Chris Dillow
When competition doesn't work

One of the first things students of economics learn is that competition tends to reduce and to equalise profits. In the real world, however, this is not true. A new paper by Jan De Loecker and Jan Eeckhout shows that profit margins around the world have risen since the 1980s, and that the variance among margins is huge.

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