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Markups, pass-through, and firm heterogeneity with sequentially mixed search / by Alex Chernoff, Allen Head and Beverly Lapham.FB3-5/2025-7E-PDF

"We study the determination of market power at the firm and industry levels when heterogeneous firms compete for sales to ex ante homogeneous buyers in a market with both directed and random search and free entry of firms that differ in productivity. Search and the distribution of productivity across active firms generate distributions of equilibrium prices and markups that we relate to variation in the elasticity of demand at the firm level. With directed search at the outset, a shock that raises the matching rate for buyers improves conditions for them and tends to lower markups"--Abstract, page ii.

Permanent link to this Catalogue record:
publications.gc.ca/pub?id=9.950620&sl=0

Publication information
Department/Agency
  • Bank of Canada, issuing body.
TitleMarkups, pass-through, and firm heterogeneity with sequentially mixed search / by Alex Chernoff, Allen Head and Beverly Lapham.
Series title
  • Staff working paper = Document de travail du personnel, 1701-9397 ; 2025-7
Publication typeMonograph - View Master Record
Language[English]
FormatDigital text
Electronic document
Note(s)
  • ISSN assigned to different series.
  • "Last updated: February 13, 2025."
  • Includes bibliographical references (pages 33-34).
  • Includes abstract in French.
Publishing information
  • [Ottawa] : Bank of Canada = Banque du Canada, 2025.
  • ©2025
Author / Contributor
  • Chernoff, Alexander W., author.
Description1 online resource (ii, 59 pages) : graphs.
Catalogue number
  • FB3-5/2025-7E-PDF
Subject terms
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