A rank size rule in a firm, produced from a hierarchical branch office location model

Makoto Okumura, Makoto Tsukai, Naoki Takada

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)

Abstract

Although many studies of the rank-size rule have examined cities, few have provided a micro-behavioral foundation for the rule itself. Using a hierarchical branch office location model, this study confirmed that the rank-size rule appears in the hierarchical structure of a firm calculated using the model. Results show that the power coefficient does not change through a numerical decrease in branch offices when the branch set-up cost increases. Results also show, however, that the power coefficient becomes larger and that employment becomes more evenly distributed when the effectiveness of branch offices, in terms of the ability to compress and aggregate business information, is enhanced. Progress in information and communications technology (ICT) has enhanced the effectiveness of branch offices. Therefore, a flatter organization of firms can be expected in the future.

Original languageEnglish
Pages (from-to)73-88
Number of pages16
JournalReview of Urban and Regional Development Studies
Volume22
Issue number2-3
DOIs
Publication statusPublished - 2010 Jul

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Development

Fingerprint Dive into the research topics of 'A rank size rule in a firm, produced from a hierarchical branch office location model'. Together they form a unique fingerprint.

Cite this