Reconsidering the Market Size Effect in Innovation and Growth

We consider three professional sports and examine if there is a disparate return response to free agent signings with small versus big market franchises. After controlling for player ability, contract characteristics, and negotiation conditions, we find evidence of a more pronounced negative small market effect in response to both basketball and baseball signings, and a more pronounced negative big market effect in response to football signings. Our results suggest that differential market size sensitivities are complex, reflecting the influence of factors such as player ability and compensation in ways that are highly nuanced and unique to each league.

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The Market Size Effect оn Formation оf Business Sector аnd Inequality Level Among Individuals Under Inelastic Production of Each Firm

Spatial Economics ◽

10.14530/se.2015.2.012-030 ◽

2015 ◽

Vol 2 (42) ◽

pp. 12-30

Author(s):

Dmitriy Pokrovskiy

Keyword(s):

Size Effect ◽

Market Size ◽

Business Sector ◽

Market Size Effect

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Revisiting the Twin-Hub Trade Pattern in East Asia

Asian Economic Papers ◽

10.1162/asep_a_00674 ◽

2019 ◽

Vol 18 (1) ◽

pp. 185-199 ◽

Cited By ~ 1

Author(s):

Chun-Chien Kuo ◽

Deng-Shing Huang ◽

Tzu-Han Yang

Keyword(s):

East Asia ◽

Value Chains ◽

Market Size ◽

Home Market ◽

Automatic Data ◽

Market Effect ◽

Main Factors ◽

Rising China ◽

In The Beginning ◽

Market Size Effect

Transport advantage, assembly hub under global value chains, technology advantage, and home-market effect are the four main factors contributing to the emergence of trade hubs in East Asia. Using a region-specific trade “hub-ness” measure, we examine the evolution of trade hubs in the East Asia. A China-Japan twin-hub pattern was found in the 1990s, but the twin hub began to divide in the beginning of the 21st century because of a rising China and declining Japan. We also show that ASEAN as an integrated region may lead to the emergence of another trade hub in East Asia, because of the enlarged ASEAN home-market-size effect, for the highly fragmented automatic data processing industry.

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