The Size Distribution of Businesses, Part I: A Benchmark Case

56 Pages Posted: 11 Jul 2008

See all articles by John Sutton

John Sutton

London School of Economics & Political Science (LSE) - Department of Economics

Date Written: December 1995

Abstract

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 side-effects). 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 distribution may be assessed.

Suggested Citation

Sutton, John, The Size Distribution of Businesses, Part I: A Benchmark Case (December 1995). LSE STICERD Research Paper No. EI09. Available at SSRN: https://ssrn.com/abstract=1158289

John Sutton (Contact Author)

London School of Economics & Political Science (LSE) - Department of Economics ( email )

Houghton Street
London WC2A 2AE
United Kingdom

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