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| Author: | Das, B. Chappell, W. Shughart, W. II |
| Title: | Demand fluctuations and firm heterogeneity |
| Journal: | Journal of Industrial Economics
1993 : MAR, VOL. 41:1, p. 51-60 |
| Index terms: | DEMAND COMPANIES PRODUCTION FLEXIBILITY |
| Language: | eng |
| Abstract: | This paper reports evidence supporting the hypothesis that production flexibility is one of the forces that explain differences in the distribution of firm sizes across industries. Using a data set composed of annual observations on 163 four-digit manufacturing industries over the period 1978-1988, the authors find a negative relationship between market share and sales variability. This empirical result suggests that large and small firms each have their own efficiency niches. |
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