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MARKET SIZE MATTERS

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Errata

This article is corrected by:

  1. Errata: ERRATUM Volume 55, Issue 2, 373–378, Article first published online: June 2007

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.

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