Market Size Matters
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. Copyright Blackwell Publishing Ltd. 2005.
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Volume (Year): 53 (2005)
Issue (Month): 1 (March)
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