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Product differentiation and firm size distribution : an application to carbonated soft drinks
Whelan, Ciara; Walsh, Patrick P.
Using brand level retail data, the firm size distribution in Carbonated Soft Drinks is shown to be an outcome of the degree to which firms have placed brands effectively (store coverage) across vertical (flavour, packaging, diet attributes) segments of the market. Regularity in the firm size distribution is not disturbed by the nature of short-run brand competition (turbulence in brand market shares) within segments. Remarkably, product differentiation resulting from firms acquiring various portfolios of product attributes and stores in market evolution determines the limiting firm size distribution.
Keyword(s): Firm size distribution; Product differentiation; Carbonated soft drinks; L11; L66; D40; Business enterprises--Size; Soft drinks
Publication Date:
Type: Working paper
Peer-Reviewed: Unknown
Language(s): English
Institution: University College Dublin
Publisher(s): Suntory and Toyota International Centres for Economics and Related Disciplines, London School of Economics and Political Science
File Format(s): other; application/pdf
First Indexed: 2012-08-25 05:16:50 Last Updated: 2018-10-11 16:36:16