MARKET SIZE MATTERS

Journal of Industrial EconomicsPublished 1 March 2005

Jeffrey R. Campbell, Hugo A. Hopenhayn

DOI10.1111/j.0022-1821.2005.00243.x

Source URL

Citations270

SJR quartileQ1

SJR score1.49

SNIP1.15

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.

Keywords

Economics, Econometrics and FinanceBusiness, Management and Accounting