Prince, Y.M. (Yvonne)Thurik, A.R. (Roy)econometric modelspricessmall businesscostmanufacturing industriesbusiness enterprises - sizeindustrial organization (economic theory)http://hdl.handle.net/1765/9673enjournalArticle0307-3378The paper investigates the extent to which small firms' price-cost margins follow those of large firms. A two-equation mode! is used with data for 36 Dutch three-digit manufacturing industries over the period 1975-86. The effects of market structure characteristics are also examined. The main result is that small firms (10-50 employees) appear to have the freedom to set prices above cost independently of larger firms in the same industry.1995-01-01 0307-3378 urn:NBN:nl:ui:15-1765/9673