Interpreting markups in Spanish manufacturing: the exponential model

  1. Lourdes Moreno Martín 1
  2. Luis C. Corchon 2
  1. 1 Universidad Complutense de Madrid
    info

    Universidad Complutense de Madrid

    Madrid, España

    ROR 02p0gd045

  2. 2 Universidad Carlos III de Madrid
    info

    Universidad Carlos III de Madrid

    Madrid, España

    ROR https://ror.org/03ths8210

Llibre:
Equilibrium Theory for Cournot Oligopolies and Related Games: Essays in Honour of Koji Okuguchi

Editorial: Springer

ISBN: 978-3-319-29253-3

Any de publicació: 2016

Tipus: Capítol de llibre

DOI: 10.2139/SSRN.1814011 WoS: WOS:000398066900010 GOOGLE SCHOLAR

Objectius de Desenvolupament Sostenible

Resum

In this paper we attempt to rationalize markups in a sample of Spanish manufacturing by assuming a representative consumer, proft-maximizing firms and constant returns to scale. We find that the standard forms of demand (CES and linear) do not provide a good explanation of markups. In contrast, a model where the representative consumer has an exponential utility function yields results that match data more closely.

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