Market Size Matters

25 Pages Posted: 22 Mar 2005

See all articles by Jeffrey R. Campbell

Jeffrey R. Campbell

University of Notre Dame; Tilburg University

Hugo A. Hopenhayn

University of California, Los Angeles (UCLA) - Department of Economics

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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.

Suggested Citation

Campbell, Jeffrey R. and Hopenhayn, Hugo A., Market Size Matters. Journal of Industrial Economics, Vol. 53, No. 1, pp. 1-25, March 2005, Available at SSRN: https://ssrn.com/abstract=685168

Jeffrey R. Campbell (Contact Author)

University of Notre Dame ( email )

United States

Tilburg University ( email )

Tilburg, 5000 LE
Netherlands

Hugo A. Hopenhayn

University of California, Los Angeles (UCLA) - Department of Economics ( email )

Box 951477
Los Angeles, CA 90095-1477
United States

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