Everything tallies with the existence of increasing returns to scale
Everything seems to tally with the existence of increasing returns to scale for companies (we illustrate this by the case of the United States): Corporate concentration is increasing; Once the concentration has been completed, large companies have monopoly positions (in the market for goods and services) and monopsony positions (in the labour market); this leads to a rise in profit margins, low wages, and possibly weaker productivity gains. Increasing returns to scale are prob ably due to the fixed costs involved in the development of new technologies: the existence of these fixed costs would therefore lead to a powerful trend of corporate concentration into larger companies.
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Natixis
Natixis
Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.