Chapter prepared for the Handbook of Industrial Organization (Vol IV). We thank the editors and three referees for their comments and suggestions, as well as Dan Ackerberg, Tim Bresnahan, Penny Goldberg, John Haltiwanger, Marc Melitz, Ariel Pakes, Amil Petrin, Michael Rubens, and Jo Van Biesebroeck. We also thank our respective co-authors, from whom we have learned a great deal and continue to do so. Finally, while this is our first formal collaboration in terms of written work, it has been our pleasure to have been able to call on our many research and teaching interactions over the years to build this chapter together. We thank Filippo Biondi, Nadine Hahn, and Luis Moyano Garcia for excellent research assistance. De Loecker acknowledges support from the ERC Consolidator Grant 816638. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.