Dominant Capital is Much More Powerful Than You Think

Dominant Capital is Much More Powerful Than You Think
Bichler, Shimshon and Nitzan, Jonathan. (2021). Real-World Economics Review Blog. February. (Article - Magazine; English).

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Abstract or Brief Description

How should we measure the power of dominant capital? Economists, although seldom if ever referring to ‘dominant capital’, quantify the relative size of large firms by measuring their so-called aggregate concentration. But for all their insight, measures of aggregate concentration have one serious shortcoming: they tend to underestimate the power of dominant capital and its temporal growth – by a lot.