MARKET DIMENSIONALITY AND THE PROLIFERATION OF SMALL-SCALE FIRMS

Cã‰sar Garcãa-Dãaz (), Arjen van Witteloostuijn () and Gãbor Pã‰li ()
Additional contact information
Cã‰sar Garcãa-Dãaz: Faculty of Economics and Business, University of Groningen, Landleven 5 9747 AD, Groningen, The Netherlands
Arjen van Witteloostuijn: Faculty of Applied Economics, University of Antwerp, Stadscampus S.Z.403, Kipdorp 61 2000, Antwerp, Belgium
Gãbor Pã‰li: Faculty of Economics and Business, University of Groningen, Landleven 5 9747 AD, Groningen, The Netherlands

Advances in Complex Systems (ACS), 2008, vol. 11, issue 02, pages 231-247

Abstract: We build an agent-based computational model to study how the changing number of active product variants in a two-dimensional product space affects the performance of different firm types (i.e. large-scale and small-scale enterprises). We use an alternative approach to measure product space dimensionality, considering that dimensions may be a fraction of the Euclidean measure. The results confirm that high dimensionality gives advantage to small-scale firms. Additionally, we find that large-scale firms may also benefit from initial increasing dimensionality, since it allows a small degree of product differentiation and price discrimination.

Keywords: Agent-based modeling; market dimensionality; market evolution (search for similar items in EconPapers)
Date: 2008

Downloads: (external link)
http://www.worldscinet.com/cgi-bin/details.cgi?type=pdf&id=pii:S0219525908001593 (application/pdf)
http://www.worldscinet.com/cgi-bin/details.cgi?typ ... ii:S0219525908001593 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:wsi:acsxxx:v:11:y:2008:i:02:p:231-247

Ordering information: This journal article can be ordered from

Access Statistics for this article

Advances in Complex Systems (ACS) is edited by Frank Schweitzer

More articles in Advances in Complex Systems (ACS) from World Scientific Publishing Co. Pte. Ltd.
Series data maintained by Tai Tone Lim ().