James Coleman, Anthony Babinec
May 20, 2016
Transactions in the economy are conceived as exchanges in which the terms ol the exchange depend on relative power of the two parties to it. An indicator of that power is industry concentration (or in the case of labor, unionization). Effects of the factors are estimated for the U.S. economy, and a procedure is outlined for comparing the terms of exchange to those in a wholly unconcentrated economy. This allows, in conjunction with an input-output matrix, the comparing of the level of activities and distribution of income in the economy with that which would be found in a wholly unconcentrated economy. The procedure for doing this is outlined, but further work remains before the comparison can be carried out.