The Size Distribution of Businesses , Part I : A Benchmark Case.
This paper examines the evolution of a skew distribution of firm sizes from the viewpoit of the "Bounds" approach to market structure. It confines attention to the role played by non-strategic factors (statistical independence, and cost side eddects). A model is proposed, which leads toa prediction regarding the least skew size distribution which is likely to be observed.
D21 - Firm Behavior ; L11 - Production, Pricing, and Market Structure Size; Size Distribution of Firms ; L15 - Information and Product Quality; Standardization and Compatibility