Scale, market power and competition in a digital world

This report assesses the impact of digitalisation on competition by examining evolution mark-ups and multifactor productivity (MFP) across firms different sizes. It finds that size is positively related to this relationship has strengthened over time. trend been accompanied an increase in relative advantage larger both changes are more pronounced digital-intensive sectors, suggesting may be underlying driver. Policy makers need consider appropriate responses if digital technologies affect smaller a heterogeneous manner.