Statistical Properties of Business Firms Structure and Growth

Kaushik Matia, Dongfeng Fu, Sergey V. Buldyrev, Fabio Pammolli (), Massimo Riccaboni () and H. Eugene Stanley

Papers from arXiv.org

Abstract: We analyze a database comprising quarterly sales of 55624 pharmaceutical products commercialized by 3939 pharmaceutical firms in the period 1992--2001. We study the probability density function (PDF) of growth in firms and product sales and find that the width of the PDF of growth decays with the sales as a power law with exponent $\beta = 0.20 \pm 0.01$. We also find that the average sales of products scales with the firm sales as a power law with exponent $\alpha = 0.57 \pm 0.02$. And that the average number products of a firm scales with the firm sales as a power law with exponent $\gamma = 0.42 \pm 0.02$. We compare these findings with the predictions of models proposed till date on growth of business firms.

Date: 2005-02
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Citations: View citations in EconPapers (18)

Published in Europhys Lett 67 (3): 498-503 (2004)

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Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:physics/0502081

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