Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/20430
Authors: 
Grossmann, Volker
Year of Publication: 
2003
Series/Report no.: 
IZA Discussion paper series 738
Abstract: 
This paper develops a model with multiple market locations in which the quality of intangible assets of firms, provided by management, determines the firms? performance. Despite an exante symmetry of potential entrants, the equilibrium assignment of heterogeneous managerial skills to firms tends to be asymmetric. This sorting outcome determines both the goods market structure at single locations and the size distribution of firms. Results are consistent with a number of observed patterns regarding the size distribution of firms and establishments, and the relation of firm size to profitability, productivity, managerial skills and manager remuneration.
Subjects: 
asymmetric equilibrium
firm size
intangible assets
managerial jobassignment
JEL: 
D40
J31
L16
Document Type: 
Working Paper

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