THE EVOLUTION OF INDUSTRIAL CONCENTRATION DUE TO LUCK: AN EXTENSION

Abstract

Gibrat's Law of Proportionate Effect is reconsidered by assuming a process of stochastic growth and decline of firms in an industry. With the assistance of computer simulations it is shown that such a process leads to an even more skewed size distribution of firms than a random process of growth only.

Citation

Kantarelis, D. (1993), "THE EVOLUTION OF INDUSTRIAL CONCENTRATION DUE TO LUCK: AN EXTENSION", Studies in Economics and Finance, Vol. 15 No. 1, pp. 71-88. https://doi.org/10.1108/eb028709