Competition in large markets
用美国222个城市餐厅数据检验大市场竞争假设，发现市场扩大后餐厅平均销售额上升、退出率和价格下降，表明策略互动对定价和更替至关重要。
Abstract This paper evaluates the simplifying assumption that producers compete in a large market without substantial strategic interactions using nonparametric regressions of producers' choices on market size. With such atomistic competition, increasing the number of consumers leaves the distributions of producers' prices and other choices unchanged. In many models featuring non‐trivial strategic considerations, producers' prices fall as their numbers increase. I examine observations of restaurants' sales, seating capacities, exit decisions, and prices from 222 US cities. Given factor prices and demographic variables, increasing a city's size increases restaurants' average sales and decreases their exit rate and prices. These results suggest that strategic considerations lie at the heart of restaurant pricing and turnover. Copyright © 2010 John Wiley & Sons, Ltd.