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Companies appear to be gaining market power

Companies appear to be gaining market power

Finance
COMPETITION forces companies to keep prices low to attract customers. But if a few firms become powerful enough, they can see off competitors and charge more. A new working paper by Jan De Loecker of the University of Leuven and Jan Eeckhout of University College London presents evidence that this is happening across the rich world.The researchers examine markups—selling prices divided by production costs. At 1, products are sold at cost; above 1, there is a gross profit. Using the financial statements of 70,000 firms in 134 countries, the authors find average markups rose from 1.1 in 1980 to 1.6 in 2016.America and Europe saw the biggest increases (see chart). But in many emerging markets markups barely rose. In China they fell. That suggests rich-world firms may have been able to i...

Why AMD Isn't Gaining Traction in Notebooks

Finance
[unable to retrieve full-text content]My colleague Tim Green recently commented on a research note that came out suggesting that Advanced Micro Devices NASDAQ AMD hasn t been able to gain market segment share with its new Ryzen Mobile processors for laptops In fact the report Green cites claims that AMD is Latest Articles in