Winners-take-More: Firm-level Evidence on the State of Competition in Austria

The Research Brief summarises new evidence from micro data on the state of competition in Austria. The results show that industry concentration has remained relatively stable, while corporate dynamics have promoted the reallocation of output and employment to more productive firms. However, average markups have increased in various sectors, particularly in non-tradable services. The largest increases are in the top decile of the mark-up distribution, indicating a self-reinforcing dynamic where the winners-take-more.