Determination of the nature and scope of competition in the channel of distribution is of increasing interest to macromarketers because of the growing importance of marketing in the American economy. This competition is influenced by many factors, among which is the extent of scale economies. This article investigates economies of scale in retailing from both a conceptual and an empirical perspective. This represents the first stage in an analysis of competition in retailing and, ultimately, throughout the channel of distribution.
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