Statistical Properties of Business Firms Structure and Growth
Europhysics Letters, Vol. 67, No. 3, pp. 498-503, 2004
8 Pages Posted: 27 Nov 2007 Last revised: 24 Dec 2007
We analyze a database comprising quarterly sales of 55624 pharmaceutical products commercialized by 3939 pharmaceutical firms in the period 1992-2001. We study the probability density function (PDF) of growth in firms and product sales and find that the width of the PDF of growth decays with the sales as a power law with exponent à3B2 = 0.20 ± 0.01. We also find that the average sales of products scales with the firm sales as a power law with exponent à3B1 = 0.57 ± 0.02. And that the average number products of a firm scales with the firm sales as a power law with exponent à3B3 = 0.42 ± 0.02. We compare these findings with the predictions of models proposed till date on growth of business firms.
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