Do Small Firms Price-Cost Margins Follow Those of Large Firms
AbstractThe paper investigates the extent to which small firms' price-cost margins follow those of large firms. A two-equation model is used with data for 36 Dutch three-digit manufacturing industries over the period 1975-86. The effects of market structure characteristics are also examined. The main result is that small firms (10-50 employees) appear to have the freedom to set prices above cost independently of larger firms in the same industry. Copyright 1995 by Blackwell Publishing Ltd and the Board of Trustees of the Bulletin of Economic Research
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Bibliographic InfoPaper provided by NEUHUYS - RESEARCH INSTITUTE FOR SMALL AND MEDIUM in its series Papers with number 9305-e.
Length: 14 pages
Date of creation: 1993
Date of revision:
Contact details of provider:
Postal: RESEARCH INSTITUTE FOR SMALL AND MEDIUM-SIZED BUSINESS IN THE NETHERLANDS, NEUHUYS.
enterprises ; prices ; market studies;
Other versions of this item:
- Prince, Yvonne M & Thurik, A Roy, 1995. "Do Small Firms' Price-Cost Margins Follow Those of Large Firms?," Bulletin of Economic Research, Wiley Blackwell, vol. 47(4), pages 321-27, October.
- Prince, Y. & Thurik, R., 1993. "Do Small Firm's Price-Cost Margins Follow Those of Large Firms," Papers 9309-g, Erasmus University of Rotterdam - Institute for Economic Research.
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