Outline the Random Growth Hypothesis and explain the implications of Girbat’s Law for the long-run trend in seller concentration. [
Question 1 (25 marks) a) Outline the Random Growth Hypothesis and explain the implications of Girbat’s Law for the long-run trend in seller concentration. [10 marks] b) Suppose in period 0 an industry comprises 8 equal-sized firms, each with sales of £12 millions. The assumed random growth process is as follows: in any subsequent year, […]