MARKET SIZE MATTERS

Jeffrey Campbell and Hugo Hopenhayn

Journal of Industrial Economics, 2005, vol. 53, issue 1, 1-25

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 most industries we examine, establishments are larger in larger cities. Models of large‐group competition in which markups fall after adding competitors can reproduce this observation.

Date: 2005
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Citations: View citations in EconPapers (134)

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https://doi.org/10.1111/j.0022-1821.2005.00243.x

Related works:
Working Paper: Market size matters (2003)
Working Paper: Market Size Matters (2002)
Working Paper: Market Size Matters (2000)
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