Firms' Size Inequality Driven by Self-Reinforcing Growth, Diverse Strategies
The article explores how big companies can become even bigger due to efficiencies called "increasing returns to scale". It shows that as firms adapt and evolve, some new ones are born while others disappear. This model matches real-world patterns in how industries change over time. The way firms grow is influenced by competition, strategies, and differences in what customers want. These factors lead to a pattern where a few large companies exist alongside many small ones. Overall, the study suggests that a mix of competitive strategies and diverse market demands shape the sizes of companies in different industries.