Statistical properties of business firms structure and growth
- 1 August 2004
- journal article
- Published by IOP Publishing in Europhysics Letters
- Vol. 67 (3) , 498-503
- https://doi.org/10.1209/epl/i2004-10070-4
Abstract
We analyze a database comprising quarterly sales of 55624 pharmaceutical products commercialized by 3939 pharmaceutical firms in the period 1992–2001. We study the probability density function (PDF) of growth in firms and product sales and find that the width of the PDF of growth decays with the sales as a power law with exponent β = 0.20 ± 0.01. We also find that the average sales of products scales with the firm sales as a power law with exponent α = 0.57 ± 0.02. And that the average number products of a firm scales with the firm sales as a power law with exponent γ = 0.42 ± 0.02. We compare these findings with the predictions of models proposed till date on growth of business firms.Keywords
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