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Mark-up and Cost Dispersion across Firms: Direct Evidence from Producer Surveys in Pakistan / David Atkin, Azam Chaudhry, Shamyla Chaudry, Amit K. Khandelwal, Eric Verhoogen.
- Format:
- Book
- Author/Creator:
- Atkin, David.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w20868.
- NBER working paper series no. w20868
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Other Title:
- Mark-up and Cost Dispersion across Firms
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2015.
- Summary:
- Researchers typically invoke theoretical assumptions to estimate mark-ups. Instead, we directly obtain mark-ups by surveying Pakistani soccer-ball producers. We document six facts: (1) Mark-ups are more dispersed than costs; (2) Mark-ups and costs increase with firm size; (3) The mark-up elasticity with respect to size exceeds the cost elasticity; (4) Costs increase with size because larger firms use higher-quality inputs; (5) Larger firms charge higher mark-ups because they have higher production shares of high-quality balls that carry higher mark-ups, and because they charge higher mark-ups conditional on ball type; (6) Correlations suggest marketing efforts are important for generating higher mark-ups.
- Notes:
- Print version record
- January 2015.
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