"Have you ever wondered how “rising Chinese competition devastated parts of the American working class” and “market power is up” both could be true? Well, this paper is the best available attempt to square that circle. Market power is up as measured by price to marginal cost ratios, or concentration ratios, but in fact competition is much tougher than it used to be and the antitrust authorities should not (at least in this regard) be blamed for their laxness.
Very few people have put in the time to understand this point, which I should add comes from some of the top IO economists in the field.
Have I mentioned that changes in concentration are correlated with the most dynamic economic sectors?"