Abstract
We present here an analysis of the effects that the firm's size, in the sense of the quantity of its assets, has on the price charged per asset. We show that the larger the firm is, the higher the price it charges. Our argument is not based on the traditional monopoly power associated with size but rather on the ability to bear risk.
Original language | English (US) |
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Pages (from-to) | 309-317 |
Number of pages | 9 |
Journal | Economics Letters |
Volume | 13 |
Issue number | 4 |
DOIs | |
State | Published - Jan 1 1983 |
All Science Journal Classification (ASJC) codes
- Finance
- Economics and Econometrics