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Aims According to traditional theory, superior competitive ability in plants generally requires relatively large plant body size. Yet even within the most crowded vegetation, most resident species are relatively small; species size distributions are right-skewed at virtually every scale. We examine a potential explanation for this paradox: small species coexist with and outnumber large species because they have greater ‘reproductive economy’, i.e. they are better equipped—and hence more likely—to produce offspring despite severe size suppression from intense competition. Methods Randomly placed plots within old-field vegetation were surveyed across the growing season. Within each plot, the largest (MAX) and smallest (MIN) reproductive individuals of each resident species were collected for above-ground dry mass measurement. We tested three hypotheses: (i) smaller resident species (with smaller MAX size) have generally smaller reproductive threshold sizes; (ii) smaller resident species have greater ‘reproductive economy’, i.e. a smaller MIN relative to MAX reproductive plant size; and (iii) MIN size predicts plot occupancy (species abundance within the community) better than MAX size. Important Findings The results supported the first and third, but not the second hypothesis. However, we could not reject the hypothesis that smaller species have greater reproductive economy, as it was not possible to record data for the largest potential plant size for each species—since even the largest (MAX) plants collected from our sampled plots were subjected to competition from neighbours under these natural field conditions. Importantly, contrary to conventional competition theory, more successful species (in terms of greater plot occupancy) had smaller minimum not larger (or smaller) maximum reproductive sizes. These results suggest that a small reproductive threshold size, commonly associated with relatively small potential body size, is generally more effective in transmitting genes into future generations when selection from neighbourhood crowding/competition is intense—at least within natural old-field vegetation. Accordingly, we propose a simple conceptual model that represents the basis for a fundamental paradigm shift in the predicted selection effects of crowding/competition on plant body size evolution. [ABSTRACT FROM PUBLISHER]