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.
Type of Material
Working Paper
Publisher
Suntory and Toyota International Centres for Economics and Related Disciplines, London School of Economics and Political Science
Series
STICERD Discussion Paper
No.EI/31
Copyright (Published Version)
Copyright Patrick Paul Walsh, Department of Economics, Trinity College, Dublin and Ciara Whelan, Department of Economics, University College, Dublin
