The effect of size on prices

J. Luis Guasch, Robert Clifford Marshall

Research output: Contribution to journalArticlepeer-review

Abstract

We present here an analysis of the effects that the firm's size, in the sense of the quantity of its assets, has on the price charged per asset. We show that the larger the firm is, the higher the price it charges. Our argument is not based on the traditional monopoly power associated with size but rather on the ability to bear risk.

Original languageEnglish (US)
Pages (from-to)309-317
Number of pages9
JournalEconomics Letters
Volume13
Issue number4
DOIs
StatePublished - Jan 1 1983

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics

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