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Author:Asplund, M.
Sandin, R.
Title:The number of firms and production capacity in relation to market size
Journal:Journal of Industrial Economics
1999 : MAR, VOL. 47:1, p. 69-86
Index terms:INDUSTRIAL ECONOMICS
COMPANIES
PRODUCTION CAPACITY
Language:eng
Abstract:Many oligoply theories predict a positive correlation between market size and the equilibrium number of firms and some also imply that competition is more intense in larger markets. The authors test these predictions on a sample of driving schools in 250 Swedish regional markets by estimating the relation between the number of firms, production capacity, and market size. The number of firms increases less than proportionally with market size. Market size per capacity unit is smaller in large markets.
SCIMA record nr: 193607
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