Asprilla, Alan; Berman, Nicolas; Cadot, Olivier; Jaud, Mélise Trade policy and market power: firm-level evidence. (English) Zbl 1431.91226 Int. Econ. Rev. 60, No. 4, 1647-1673 (2019). Summary: This article identifies the effect of trade policy on market power through new data and a new identification strategy. We identify market power by observing how exporting firms price discriminate across markets following variations in bilateral exchange rates. Pricing-to-market is prevalent in all countries in our sample, even among small firms, although it is increasing in firm size. More importantly, we find that the effect of nontariff measures (NTMs) is not isomorphic to that of tariffs. Whereas tariffs reduce the market power of foreign firms through rent-shifting effects, NTMs reinforce the market power of nonexiting firms, domestic and foreign alike. Cited in 1 Document MSC: 91B60 Trade models 91B24 Microeconomic theory (price theory and economic markets) Keywords:trade policy; market power; firm-level impact PDFBibTeX XMLCite \textit{A. Asprilla} et al., Int. Econ. Rev. 60, No. 4, 1647--1673 (2019; Zbl 1431.91226) Full Text: DOI