Concentration, Market Power, and Misallocation: The Role of Endogenous Customer Acquisition

We thank David Argente, Ariel Burstein, Doireann Fitzgerald, and seminar participants at various institutions and conferences for valuable comments and suggestions. Luigi Caloi provided superb research assistance. Previous versions of this manurscript were circulated under the title “Growing by the Masses: Revisiting the Link between Firm Size and Market Power.” Researcher(s)’ own analyses calculated (or derived) based in part on data from Nielsen Consumer LLC and marketing databases provided through the NielsenIQ Datasets at the Kilts Center for Marketing Data Center at The University of Chicago Booth School of Business. The conclusions drawn from the NielsenIQ data are those of the researcher(s) and do not reflect the views of NielsenIQ. NielsenIQ is not responsible for, had no role in, and was not involved in analyzing and preparing the results reported herein. Hassan Afrouzi gratefully acknowledges support from Lenfest Junior Development Grant from Columbia University. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

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