This paper asks whether managers are paid for market power. Bao, De Loecker, and Eeckhout build a general equilibrium model in which firms compete oligopolistically in goods markets (following Atkeson …
PublishedAmerican Economic ReviewOnline 1 Jan 2026Published Jan 2026
This paper asks whether and how optimal income taxation should change when firms have market power. The question is motivated by the documented rise in economy-wide markups since 1980, which has …