Size (of the product) matters

► This paper provides insights on how firms decide the size of the products. ► Size depends on the characteristics of supply and demand and on pricing (linear v non linear). ► Under non-linear pricing, the large size is chosen if the cost savings are important. ► Under linear pricing, if production costs are high only the small size is supplied. ► Non-linear pricing has mostly a positive effect due to an output/size expansion effect.