Some Facts about Dominant Firms
We measure the evolution of dominant firms in the U.S. economy since 1960, and globally since 1990. Contrary to common wisdom, dominant firms have not become larger, have not become more productive, and their contribution to aggregate productivity growth has fallen by more than one third since 2000.
We are grateful to the Smith Richardson Foundation for a research grant, and to seminar participants at the NBER Summer Institute, University of Chicago, New York University, and the 2019 AEA meetings for stimulating discussions, to David Autor, Olivier Blanchard, Charles Hulten and Xavier Gabaix for their comments, and to Steve Davis and John Van Reenen for their comments, discussions, and suggestions. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.