Search Results
Working Paper
The "Matthew Effect" and Market Concentration: Search Complementarities and Monopsony Power
This paper develops a dynamic general equilibrium model with heterogeneous firms that face search complementarities in the formation of vendor contracts. Search complementarities amplify small differences in productivity among firms. Market concentration fosters monopsony power in the labor market, magnifying profits and further enhancing the output share of high-productivity firms. The combination of search complementarities and monopsony power induce a strong "Matthew effect" that endogenously generates superstar firms out of uniform idiosyncratic productivity distributions. Reductions in ...
Journal Article
Superstar Firms and the Falling Labor Share
Review of the following article: {{p}} "Concentrating on the Fall of the Labor Share." David Autor, David Dorn, Lawrence F. Katz, Christina Patterson, and John Van Reenen, American Economic Review: Papers & Proceedings, May 2017, vol. 107, no. 5, pp. 180-185.