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The size distribution of businesses, part I: a benchmark case

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This paper examines the evolution of a skew distribution of firm sizes from the viewpoint of the 'Bounds' approach to market structure. It confines attention to the role played by non-strategic factors (statistical independence, and cost sideeffects). A model is proposed, which leads to a prediction regarding the least skew size distribution which is likely to be observed. This distribution provides a benchmark relative to which the impact of strategic effects on the form of the size of distribution may be assessed.

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en

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application/pdf

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http://eprints.lse.ac.uk/2289/1/The_Size_Distribution_of_Businesses%2C_Part_I_A_Benchmark_Case.pdf

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