Market power significantly influences price levels in the US economy
Is it true that market power significantly influences price levels in the US economy?
Yes. Multiple economic studies and industry analyses demonstrate that market power and corporate concentration in the U.S. allow firms to sustain higher price markups, significantly influencing overall price levels.
Verdict: SUPPORTED · 5 sources for, 0 against · Last checked
The retrieved papers provide substantial empirical and analytical support demonstrating that market power, concentration, and markups significantly influence pricing and price levels across various sectors of the U.S. economy, such as healthcare and general commerce. No papers refute the claim.
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Basu, S. (2019). Are Price-Cost Markups Rising in the United States? A Discussion of the Evidence. doi.org. https://doi.org/10.1257/JEP.33.3.3
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Waldmann, R. (1991). Implausible Results or Implausible Data? Anomalies in the Construction of Value-Added Data and Implications for Estimates of Price-Cost Markups. doi.org. https://doi.org/10.1086/261802
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Davis, L. (2024). Profits and markups during the post-COVID-19 inflation shock in the U.S. economy: a firm-level lens. doi.org. https://doi.org/10.4337/ejeep.2024.0137
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Miller, J. R., Frick, K., & Gourin, C. (2022). Hospital Markup in Head and Neck Cancer Surgery in the US.. doi.org. https://doi.org/10.1001/jamaoto.2022.3340
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X, X., W, D., PJ, E., RJ, L., RC, M., JW, R., & H, W. (2025). Financial Ties, Market Structure, Commercial Prices, and Medical Director Compensation in Dialysis.. doi.org. https://doi.org/10.1001/jamahealthforum.2025.2659
What does the evidence say?
The retrieved papers provide substantial empirical and analytical support demonstrating that market power, concentration, and markups significantly influence pricing and price levels across various sectors of the U.S. economy, such as healthcare and general commerce. No papers refute the claim.
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