A technological and organisational explanation for the size distribution of firms

Gans, Joshua S. and Quiggin, John (2003) A technological and organisational explanation for the size distribution of firms. Small Business Economics, 21 3: 243-256. doi:10.1023/A:1025788400818

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Author Gans, Joshua S.
Quiggin, John
Title A technological and organisational explanation for the size distribution of firms
Journal name Small Business Economics   Check publisher's open access policy
ISSN 0921-898X
1573-0913
Publication date 2003
Sub-type Article (original research)
DOI 10.1023/A:1025788400818
Volume 21
Issue 3
Start page 243
End page 256
Total pages 14
Place of publication The Netherlands
Publisher Springer
Language eng
Subject 1503 Business and Management
Abstract This paper combines insights from the literature on the economics of organisation with traditional models of market structure to construct a theory of equilibrium firm size heterogeneity under the assumption of a homogenous product industry. It is possible that configurations consisting entirely of small firms (run by entrepreneurs with limited attention) and with larger firms (using managerial techniques to substitute away these limits to allow increasing returns technologies to become profitable) can arise in equilibrium. However, there also exist equilibrium configurations with the co-existence of large and small firms. The efficiency properties of these respective equilibria are discussed. Finally, the implications of an expanding market size are considered.
Keyword Economics
Business Firms
Life-cycle
Competition
Innovation
Industry
Growth
Partnerships
Equilibrium
Corporation
Evolution
Business
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status Unknown

Document type: Journal Article
Sub-type: Article (original research)
Collections: Excellence in Research Australia (ERA) - Collection
School of Economics Publications
 
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Citation counts: TR Web of Science Citation Count  Cited 8 times in Thomson Reuters Web of Science Article | Citations
Scopus Citation Count Cited 10 times in Scopus Article | Citations
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Created: Mon, 13 Aug 2007, 13:48:38 EST