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Firm Size Distribution in Small Samples

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  • Luigi Buzzacchi
  • Tommaso M. Valletti

Abstract

Sutton (1998) has recently proposed a theoretical lower bound to firm size inequality when a market is made of several independent submarkets. His results are valid asymptotically, as the number of submarkets becomes arbitrarily large. We show that, in small samples, his results can be interpreted as a positive relationship between an index of firm size inequality and the number of submarkets. We also test this relationship in the Italian motor insurance market. Copyright Blackwell Publishers Ltd and the Board of Trustees of the Bulletin of Economic Research, 2004.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Bulletin of Economic Research.

Volume (Year): 56 (2004)
Issue (Month): 4 (October)
Pages: 301-309

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Handle: RePEc:bla:buecrs:v:56:y:2004:i:4:p:301-309

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Cited by:
  1. Luigi Buzzacchi & Tommaso Valetti, 1999. "Firm Size Distribution: Testing the "Independent Submarkets Model" in the Italian Motor Insurance Industry," STICERD - Economics of Industry Papers 24, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.

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