Market Size Matters

Jeffrey Campbell () and Hugo A. Hopenhayn

No 9113, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper characterizes the effects of market size on the size distribution of establishments for thirteen retail trade industries across 225 U.S. cities. In nearly every industry we examine, establishments are larger in larger cities, and in four industries the dispersion of establishment sizes depends on market size. Models of competition in which individual producers' markups do not depend on the number of producers are inconsistent with these observations. Models in which competition is tougher in larger markets can reproduce the positive effect of market size on establishments' average size.

JEL-codes: L11 L16 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ent and nep-mic
Date: 2002-08
Note: IO
View citations in EconPapers

Downloads: (external link)
http://www.nber.org/papers/w9113.pdf (application/pdf)
Access to the full text is generally limited to series subscribers, however if the top level domain of the client browser is in a developing country or transition economy free access is provided. More information about subscriptions and free access is available at http://www.nber.org/wwphelp.html.

Related works:
Working Paper: Market Size Matters (2000)
Working Paper: Market size matters (2003)
Journal Article: MARKET SIZE MATTERS (2005)
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:nbr:nberwo:9113

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w9113
The price is Paper copy available by mail.

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc
Address: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Contact information at EDIRC.
Series data maintained by ().