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Product differentiation and firm size distribution: an application to carbonated soft drinks

Walsh, Patrick Paul and Whelan, Ciara (2002) Product differentiation and firm size distribution: an application to carbonated soft drinks. EI, 31. Suntory and Toyota International Centres for Economics and Related Disciplines, London School of Economics and Political Science, London, UK.

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Abstract

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 of the firm size distribution is not disturbed by the nature of short-run brand competition (turbulence in brand market share) 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.

Item Type: Monograph (Discussion Paper)
Official URL: http://sticerd.lse.ac.uk
Additional Information: © 2002 Patrick Paul Walsh and Ciara Whelan
Library of Congress subject classification: H Social Sciences > HD Industries. Land use. Labor
Journal of Economic Literature Classification System: L - Industrial Organization > L6 - Industry Studies: Manufacturing > L66 - Food; Beverages; Cosmetics; Tobacco
L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L11 - Production, Pricing, and Market Structure; Size Distribution of Firms
Sets: Collections > Economists Online
Research centres and groups > Suntory and Toyota International Centres for Economics and Related Disciplines (STICERD)
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Identification Number: 31
Date Deposited: 09 Jul 2008 07:31
URL: http://eprints.lse.ac.uk/6745/

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