| Jeffrey Campbell, University of Chicago |
| Market Size Matters |
| Session: C-4-10 Saturday 12 August 2000 by Campbell, Jeffrey |
| This paper characterizes the organization of the U.S. retail trade sector by comparing establishment sizes and numbers across cities with different populations. In most two digit retail trade industries, large cities have larger establishments but fewer establishments per capita than do small cities. These observations are inconsistent with free entry models where markups are independent of the number of producers. Models in which adding competitors reduces markups can reproduce these results. |
| Submitted paper full-text in .pdf |