Market Share Dynamics and the ‘Persistence of Leadership’ Debate
AbstractThis paper introduces a novel analysis of the classic "persistence of leadership" question, and applies it to a newly constructed dataset for Japanese manufacturing. The analysis rests on an appeal to an empirical "scaling relationship" between current market share and the variance of changes in market share. This relationship provides a powerful "model selection criterion" for candidate models of market share dynamics. It also makes it feasible, even in small datasets, to test directly for the properties of the "first passage times" corresponding to loss of leadership.
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Bibliographic InfoPaper provided by Suntory and Toyota International Centres for Economics and Related Disciplines, LSE in its series STICERD - Economics of Industry Papers with number 37.
Date of creation: Jan 2004
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Web page: http://sticerd.lse.ac.uk/_new/publications/default.asp
market share; industry dynamics; scaling; Japanese economy;
Find related papers by JEL classification:
- L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
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- Sutton, John, 1980. "A Model of Stochastic Equilibrium in a Quasi-Competitive Industry," Review of Economic Studies, Wiley Blackwell, vol. 47(4), pages 705-22, July.
- Giannetti, C., 2008. "Unit Roots and the Dynamics of Market Shares: An Analysis Using Italian Banking Micro-Panel," Discussion Paper 2008-44, Tilburg University, Center for Economic Research.
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