“Praying for Inflation”: How Market Concentration Facilitates Inflationary Pressures

In this article, we propose a nuanced explanation connecting concentration and inflationary pressures. Drawing on oligopoly theory, behavioral factors, and information asymmetries, we argue that firms in concentrated industries may exploit economy-wide inflation as a pretext to raise prices beyond cost-justified levels. General inflation provides legitimacy, coordination cues, and reduced scrutiny that lower the strategic risks of price increases. We discuss how this mechanism differs from stand