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Firm Organization and the Structure of Retail Markets
Author(s) -
Dinlersoz Emin M.
Publication year - 2004
Publication title -
journal of economics and management strategy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.672
H-Index - 68
eISSN - 1530-9134
pISSN - 1058-6407
DOI - 10.1111/j.1530-9134.2004.00009.x
Subject(s) - business , chain (unit) , differential (mechanical device) , retail sales , industrial organization , marketing , commerce , physics , astronomy , engineering , aerospace engineering
This paper analyzes the structure of retail markets by highlighting the differential pattern exhibited across local markets by two different types of firm organization: chain stores versus stand‐alone stores. Data from retail alcoholic beverage industry in California suggest that the number of chain stores is proportional to city size. Further evidence on the sales of establishments indicates that average size of a stand‐alone store virtually is invariant to city size, whereas chain stores appear to get larger as city size increases. Theories consistent with these findings are discussed .