• Media type: E-Book
  • Title: Markups for Consumers
  • Contributor: Ganglmair, Bernhard [VerfasserIn]; Kann, Alexander [VerfasserIn]; Tsanko, Ilona [VerfasserIn]
  • imprint: [S.l.]: SSRN, [2021]
  • Published in: ZEW - Centre for European Economic Research Discussion Paper ; No. 20-079
  • Extent: 1 Online-Ressource (33 p)
  • Language: English
  • DOI: 10.2139/ssrn.3766106
  • Identifier:
  • Origination:
  • Footnote: Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments 2020 erstellt
  • Description: A central motivating factor for studying price markups is their effect on consumer welfare. Reported estimates of (firm-level) price markups in the literature, however, are often focused on industry or cross-country comparisons. These treat different industries equally rather than based on how relevant they are for consumers. We propose markup measures in which firm-level price markups are weighted according to consumption expenditures in the respective industries. Using a concordance table between consumption categories (otherwise used for the calculation of consumer price indices) and a firm’s industry classification, we report results for Germany for the years 2002 through 2016. We find that consumption-weighted price markups are higher than the conventionally reported revenue-weighted mark-ups. We further show that consumption-weighted markups have increased faster in particular for medium-income households, which highlights a potential role of price markup as a contributing factor to changes of inequality in society
  • Access State: Open Access