Market Size Matters

Jeffrey Campbell

No 1225, Econometric Society World Congress 2000 Contributed Papers from Econometric Society

Abstract: This paper characterizes the organization of the U.S. retail trade sector by comparing establishment sizes and numbers across cities with different populations. In most two digit retail trade industries, large cities have larger establishments but fewer establishments per capita than do small cities. These observations are inconsistent with free entry models where markups are independent of the number of producers. Models in which adding competitors reduces markups can reproduce these results.

Date: 2000-08-01
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Related works:
Journal Article: MARKET SIZE MATTERS (2005)
Working Paper: Market size matters (2003)
Working Paper: Market Size Matters (2002)
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