arbiter
JournalsAccount

Market Power in Finance

Alexandre Corhay et al.

Annual Review of Financial Economics2025https://doi.org/10.1146/annurev-financial-112823-015621article
AJG 3ABDC B
Weight
0.50

Abstract

Growing evidence points to declining competition across industries in the United States, including the financial sector. Such findings have reinvigorated research efforts to understand the ramifications of rising market power for financial markets. In this article, we survey some of these efforts by reviewing the evidence and outlining a simple model structure that we find useful in organizing and examining links between trends in the competitive environment and financial markets. The framework is highly tractable and endogenously links market concentration, markups, and demand elasticities. Indeed, we think that the structure could serve as a building block in models that can help rationalize and connect some of the empirical evidence we review, as well as flesh out further implications in future research.

Open via your library →

Cite this paper

https://doi.org/https://doi.org/10.1146/annurev-financial-112823-015621

Or copy a formatted citation

@article{alexandre2025,
  title        = {{Market Power in Finance}},
  author       = {Alexandre Corhay et al.},
  journal      = {Annual Review of Financial Economics},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1146/annurev-financial-112823-015621},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

Market Power in Finance

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.