The Size Distribution of Businesses, Part I: A Benchmark Case
John Sutton
STICERD - Economics of Industry Papers from Suntory and Toyota International Centres for Economics and Related Disciplines, LSE
Abstract:
This paper examines the evolution of a skew distribution of firm sizes from the viewpoint of the ?Bounds? approach to market structure. It confines attention to the role played by non-strategic factors (statistical independence, and cost side-effects). A model is proposed, which leads to a prediction regarding the least skew size distribution which is likely to be observed. This distribution provides a benchmark relative to which the impact of strategic effects on the form of the size distribution may be assessed.
Keywords: Market structure; size distribution of firms (search for similar items in EconPapers)
Date: 1995-12
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Citations: View citations in EconPapers (7)
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Persistent link: https://EconPapers.repec.org/RePEc:cep:stieip:09
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