$ # "# ".+ >658: +.'</58 5, 8+4). /839 4:+868+:/4- 5;8 58:8'/:9
#4/<+89/:? 5, 5::/4-.'3
+)+3(+8 54':.'4 ':54
+= &581 #4/<+89/:?
'9+* 54 05/4: =581 =/:. !'3;+2 58:;3
#4/<+89/:? 5, /44+95:'
'4*
8'4)/9 8'3'8@
!"!
58:8'/: 59: +>658:+89 *54B: 9+22 <+8? =/*+2?
firms penetrating at least that many markets
100000
10000
1000
100
10
1
2
4
8
16
32
number of markets penetrated
64
113
Figure 1: Frequency of Selling in Multiple Markets
58:8'/: >658:+89 =.5 9+22 =/*+2? '8+ 9?9:+3':/)'22? 2'8-+8 /4 8'4)+
average sales in French market ($ millions)
1000
100
10
1
10
100
1000
10000
firms selling to k or more markets
100000
Figure 8: Firm Size and Frequency of Multiple Markets
58:8'/: ".+ 9/@+ */9:8/(;:/54 5, 9'2+9 /9 <+8? 9/3/2'8 ')8599 3'81+:9 =/:. 8'4)+ /:9+2,
45: <+8? */D+8+4:
percentile / mean
100
10
1
.1
.01
.001
LG
SM
ME
FR
.01
SM
ME
LG
FR
.05
SM
ME
LG
FR
.1
1-p
SM
ME
LG
FR
SM
ME SM
LG ME
FR
LG
FR
.25
SM
LG
FR
ME
.5
SM
FR
ME
LG
SM
SM
FR
SM
ME
ME
FR
LG
ME
LG
LG
FR
.75 .99
Figure 6: Distribution of Sales, by Market Size
58:8'/: ".+ 3'8-/4 5, +4:8? :B9 359:2? :.+ 4;3(+8 45: :.+ '35;4:
estimate of firms entering market (thousands)
10000
JAP
USA
CAN
1000
USR
GER
UNK
AUL
CHN
SWI
BRA
GEE
ITA
TAI
AUT
BUL SPA
FRA
NZE
SWE
NET
FIN
YUG
NOR
ARG
SOU
CZE
ROM
ISR DEN
BEL
MEX
KOR
IND
HOK
VEN
VIE
GRE
MAY
IRE
SAU
HUN
SIN
CHI
POR
CUB
TUR
COL
ALG
IRN
EGY
INO
ECU
PER
SUD
ZIM
PHI
COT
SYR
CAM
URU
PAN
PAKTHA
MOR
ALB
TRICOSKUW
JOR
TAN
TUN
DOM
SRI
ELS
ETH
BOL
GUA
BUK
PAR
SEN
HON
IRQ
OMA
ZAI
PAP
BAN
NIA
JAM
TOGMAS ANG LIY
SOM
KEN
CHA
MAL
MAD
NEP
NIC
UGA
BEN
RWA
NIG MOZ
BUR
ZAMGHA
CEN
100
10
MAU AFG
MAW
LIB
SIE
1
.01
.1
1
10
100
market size ($ billions)
1000
Figure 5: Entry and Market Size
10000
"5='8* ' ".+58+:/)'2 4:+868+:':/54
'82/+8 =581 +4+8'2/@':/54 5, :5 /4)58658':+ A>+* )59:
+8+ ' <'8/':/54 5, '81 +2/:@ !++ '295 ".53'9 .'4+? 3'1+9 :.+ )544+):/54
".+ '9/)9
/>/:!:/-2/:@ 68+,+8+4)+9 '4* 545652/9:/) 536+:/:/54 +2/:@ .'4+?
'8+:5 */9:8/(;:/54 5, 65:+4:/'2 685*;)+8 +C)/+4)/+9 & .'4+?
/>+* )59: 5, +4:8? 6+8 3'81+: .'4+?
5;4:8/+9 '9 +9:/4':/549
5;4:8/+9 '9 3'81+:9 4*5-+45;9 )54:/4;;3 5, '<'/2'(2+ -55*9 >6+4*/:;8+9 /4 )5;4:8? =.+8+ 8/)+ 8/)+ /4*+>
5;4:8/+9 '9 !5;8)+9
5;4:8/+9 '9 95;8)+9 %'-+
+'9;8+ 5, 65:+4:/'2 685*;)+89 =/:. +C)/+4)? " +263'4 +2/:@
'4* &+'62+ " " /4*+6+4*+4: 5, +'9;8+ 5, A839 :.': )'4 685*;)+ ': ;4/: )59: /41/4- !5;8)+9 '4* +9:/4':/549
)+(+8- ;4/: :8'49658: )59:9 +2/<+8/4- ;4/: :5 *+9:/4':/54 8+7;/8+9
9./66/4- ,853 =/:. +'9;8+ 5, A839 ,853 :.': )'4 9+22 :5 ': ;4/: )59: "5:'2 3+'9;8+ 5, A839 :.': )'4 9+22 /4 ': )59: =.+8+
'). A83 9;662?/4- -55* :5 )5;4:8? /4);89 ' A>+* +4:8? )59: $ 4:8?
85A: /4 3'81+: 4:8? /, =.+8+ 952<+9
99;3+ :.':
'4* :.': '4* '8+ /4*+6+4*+4: ".+4
'4*
!52</4-
=.+8+ !53+ 362/)':/549
8'):/54 5, '):/<+ 9+22+89 /4 ,853 8'):/54 =/:. )59: 354- A839 =/:. ,8'):/54 9+22/4- ! '8+:5 =/:.
6'8'3+:+8 !
! +'4 9'2+9 /4 ! +9;2:9 54 /839 6+8 '81+:
!.'8+ 5, 9'2+9
;3(+8 5, A839 ,853 )5;4:8? 9+22/4- /4 )5;4:8? !/4)+ !
!
59/:
95 :.':
!
!+: 362/)':/549 ,58 +4:8? '4* 3'81+: 9/@+ 58:8'/: estimate of firms entering market (thousands)
10000
JAP
USA
CAN
1000
USR
GER
UNK
AUL
CHN
SWI
BRA
GEE
ITA
TAI
AUT
BUL SPA
FRA
NZE
SWE
NET
FIN
YUG
NOR
ARG
SOU
CZE
ROM
ISR DEN
BEL
MEX
KOR
IND
HOK
VEN
VIE
GRE
MAY
IRE
SAU
HUN
SIN
CHI
POR
CUB
TUR
COL
ALG
IRN
EGY
INO
ECU
PER
SUD
ZIM
PHI
COT
SYR
CAM
URU
PAN
PAKTHA
MOR
ALB
TRICOSKUW
JOR
TAN
TUN
DOM
SRI
ELS
ETH
BOL
GUA
BUK
PAR
SEN
HON
IRQ
OMA
ZAI
PAP
BAN
NIA
JAM
TOGMAS ANG LIY
SOM
KEN
CHA
MAL
MAD
NEP
NIC
UGA
BEN
RWA
NIG MOZ
BUR
ZAMGHA
CEN
100
10
MAU AFG
MAW
LIB
SIE
1
.01
.1
1
10
100
market size ($ billions)
1000
Figure 5: Entry and Market Size
10000
'81+:9 6+8 /83
4 362/)':/54 5, 545652/9:/) 536+:/:/54 /9 '81+: /+8'8).? 22 A839
:.': +4:+8 3'81+: +4:+8 3'81+:9 =/:. +45:+ (? :.+ 4;3(+8 5, 8+4). A839 9+22/4- :5 58 358+ 3'81+:9
9 8/9+9 A839 /4 853 '(5<+ -/<+4 .'<+ 25=+8 )59:9
!
! !
!
58:8'/:9 '4* average sales in French market ($ millions)
1000
100
10
1
10
100
1000
10000
firms selling to k or more markets
100000
Figure 8: Firm Size and Frequency of Multiple Markets
:.+8 362/)':/549
%.': '(5;: :.+ */9:8/(;:/54 5, 9'2+9 ')8599 3'81+:9 58:8'/: 8E).+: /9:8/(;:/54 ,58 '4* =/:. 6'8'3+:+8 0;9: '(5<+ )'4
)'6:;8+ :.+ 9/@+ */9:8/(;:/54 7;/:+ =+22
85*;)+89 :.+4 .'<+ :=5 /4*+6+4*+4: 95;8)+9 5, .+:+85-+4+/:? '4* '4* 42? 3'::+89 ,58 3'81+: +4:8?
/+8'8)./+9 '81+: 656;2'8/:? <9 8'41/4- +2-/;3 /9 :.+ 359: 656;2'8
,58+/-4 *+9:/4':/54 (;: 4+'82? .'2, 5, +>658:+89 *54B: 9+22 :5 +2-/;3
percentile / mean
100
10
1
.1
.01
.001
LG
SM
ME
FR
.01
SM
ME
LG
FR
.05
SM
ME
LG
FR
.1
1-p
SM
ME
LG
FR
SM
ME SM
LG ME
FR
LG
FR
.25
SM
LG
FR
ME
.5
SM
FR
ME
LG
SM
SM
FR
SM
ME
ME
FR
LG
ME
LG
LG
FR
.75 .99
Figure 6: Distribution of Sales, by Market Size
;:;8+ %581
/+8'8)./+9 %5;2* ' /)'8*/'4 ,8'3+=581 9/3/2'8 :5 *5 (+::+8
?4'3/)9 5, +4:8?8@5 ;::3+8
58+/-4 /8+): 4<+9:3+4: !:+6.+4 599 &+'62+
average sales in French market ($ millions)
1000
100
10
1
FRA
1
BEL
2
GER
SWI
64
113
MAW
UGA
BOL
SOM
JAM
SIE
ELS
ALB
ZAM
GUA
NIC
AFG
VIE
COS
HON
LIB
GHA
BAN
DOM
PAP
ETH
ZIM
SRI
SUD
TAN
MOZ
LIY
PAR
ECU
GEE
PER
TRI
KEN
CUB
BUR
IRN
ROM
NEP
PHI
CHN
COL
INO
RWA
URU
BUL
OMA
ANG
PAK
USR
IRQ
MAY
PAN
NIA
JOR
ARG
CZE
CHI
SYR
THA
MEX
VEN
HUN
MAU
TAI
NZE
MAS
KOR
ZAI
YUG
TUR
MAL
CHA
MAD
BRA
EGY
IND
CEN
BUK
NIG
KUW
BEN
SOU
SIN
TOG
IRE
AUL
FIN
SAU
SEN
HOK
GRE
ISR
NOR
TUN
POR
COT
DEN
JAP
SWE
MOR
AUT
CAM ALG
CAN
NET SPA
ITAUNK USA
4
8
16
32
popularity of market penetrated
Figure 2b: Firm Size and Popularity of Market
average sales in French market ($ millions)
1000
100
10
1
10
100
1000
10000
firms selling to the nth most popular market
100000
Figure 8b: Firm Size and Popularity of Market
firms selling to k or more markets
100000
10000
1000
100
10
10
100
1000
10000
firms selling to kth most popular market
100000
Figure 7: Market Hierarchy for French Firms
".+ !:':+ 5, :.+ +9+'8).
36/8/)'2 /4<+9:/-':589 '8+ '99+3(2/4- ' =/*+ '88'? 5, *':' 54 685*;)+8
2+<+2 (+.'</58 /4 /4:+84':/54'2 :8'*+
".+9+ /4<+9:/-':/549 .'<+ ?/+2*+* 9:?2/@+* ,'):9 :.': .'<+ ,58)+* :8'*+
+)5453/9:9 :5 '362/,? '4* 8+</9+ :.+58/+9 5, /4:+84':/54'2 :8'*+
%+ '8+ 3'1/4- 685-8+99 :5='8* *+<+256/4- ' 9:8;):;8'2 ,8'3+=581 :.': )'4
'))5335*':+ :.+9+ ('9/) ,'):9