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Do Small Firms Price-Cost Margins Follow Those of Large Firms

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  • Prince, Y.
  • Thurik, A.R.

Abstract

The 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
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Prince, Y. & Thurik, A.R., 1993. "Do Small Firms Price-Cost Margins Follow Those of Large Firms," Papers 9305-e, NEUHUYS - RESEARCH INSTITUTE FOR SMALL AND MEDIUM.
    • Handle: RePEc:fth:miklrr:9305-e
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    Cited by:

    1. Ivana Blazkova, & Ondrej Dvoulety, 2017. "Is the price-cost margin affected by the market concentration? Evidence from the Czech food and beverages industry," Business and Economic Horizons (BEH), Prague Development Center, vol. 13(2), pages 256-269, May.

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