Market Size Matters
45 Pages Posted: 24 Sep 2003
There are 2 versions of this paper
Market Size Matters
Market Size Matters
Date Written: August 2003
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.
JEL Classification: L11, L16, L81
Suggested Citation: Suggested Citation
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