Country Dependence on Company Size Distributions and a Numerical Model Based on Competition and Cooperation

Publisher Website
Google Scholar
Abstract
By analyzing international company data we find that company size distributions are not universal but clearly depend on country. In each country, the size distributions for different categories of business are quite similar. In order to understand the country dependence we introduce a numerical model of company size which is based on two effects: stochastic competitive growth by capital exchange, and deterministic protection of small companies by equi-partition of taxed wealth. A power law distribution is realized when the protection effect is negligible. The model is also consistent with the empirical laws for company's growth rates.