Wall-mart beats the mom and pop stores Starbucks kills the local coffe shops. Local grocery shops just can' compete with Tescos.
In academic terms, this is known as the "economies of scale" And there is a reason why the mom and pop stores are always the underdog when Wall-Mart moves in. The economies of scale are bigger than the diseconomies of scale by degrees of magnitude. I mean, it would be nice to imagine that the nimble local stores are going to win out over the big chains, but theory says thats not going to happen, and in practice we observe that this does not happen.
The economies of scale are simply so much larger than the diseconomies that they steamroll them withotu noticing that they were ever there.
What is more is, we can observe how these things scale in countries from Iceland at 300 000 people, to Finland at 5 million to Germany at 80 million. There doesn't seem to be much evidence of diseconomies of scale over this span.
I dont really think we can assume they'd somehow spring into existence beyond the population of Germany.
In academic terms, this is known as the "economies of scale" And there is a reason why the mom and pop stores are always the underdog when Wall-Mart moves in. The economies of scale are bigger than the diseconomies of scale by degrees of magnitude. I mean, it would be nice to imagine that the nimble local stores are going to win out over the big chains, but theory says thats not going to happen, and in practice we observe that this does not happen.
The economies of scale are simply so much larger than the diseconomies that they steamroll them withotu noticing that they were ever there.
What is more is, we can observe how these things scale in countries from Iceland at 300 000 people, to Finland at 5 million to Germany at 80 million. There doesn't seem to be much evidence of diseconomies of scale over this span.
I dont really think we can assume they'd somehow spring into existence beyond the population of Germany.