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Thurik, R. and Prince, YvonneM. (1995). Do small firms' price-cost margins follow those of large firms? Bulletin of Economic Research (Hull), 47(4):321--327.

  • Affiliated author
  • Publication year
    1995
  • Journal
    Bulletin of Economic Research (Hull)
View publication

The paper investigates the extent to which small firms' price‐cost margins follow those of large firms. A two‐equation model is used with data for 36 Dutch three‐digit manufacturing industries over the period 1975–86. The effects of market structure characteristics are also examined. The main result is that small firms (10‐50 employees) appear to have the freedom to set prices above cost independently of larger firms in the same industry.