Statistical Properties of Business Firms Structure and Growth

Details Statistical Properties of Business Firms Structure and Growth Statistical Properties of Business Firms Structure and Growth

2005-02-15

arxiv.org/abs/physics/0502081v1

Europhys Lett 67 (3): 498-503 (2004)

Physics

Physics and Society

Scientific paper

10.1209/epl/i2004-10070-4

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 $\beta = 0.20 \pm 0.01$. We also find that the average sales of products scales with the firm sales as a power law with exponent $\alpha = 0.57 \pm 0.02$. And that the average number products of a firm scales with the firm sales as a power law with exponent $\gamma = 0.42 \pm 0.02$. We compare these findings with the predictions of models proposed till date on growth of business firms.

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