IDEAS home Printed from https://ideas.repec.org/p/icr/wpicer/14-2005.html
   My bibliography  Save this paper

Relative Market Share, Leadership and Competition in Concentrated Banking Markets

Author

Listed:
  • Arie Melnik
  • Oz Shy
  • Rune Stenbacka

Abstract

For many years IO economists devoted attention to the size distributions’ of firms in a given industry. Most studies showed that the size distribution of firms in oligopolistic markets is highly skewed. There are many small firms and a few large firms. There is also a consensus that relative market shares are important and that large firms are, in general, more profitable and durable than small firms. Relative size is also important as a determinant of the structure of the industry. The concept is also central in strategic analysis of business firms and in the formulation of government (regulatory) policy. In this paper we propose to use an empirical measure of market leadership. The measure relies on the assumption that the degree of competition critically depends on how dominant the leading firm is in a given industry. The measure also takes into account the number of “significant” competitors in the market and how close they are to the leading firm in terms of size. The measure is simple to use and easy to interpret. It also yields a critical value that facilitates comparisons between different markets.

Suggested Citation

  • Arie Melnik & Oz Shy & Rune Stenbacka, 2005. "Relative Market Share, Leadership and Competition in Concentrated Banking Markets," ICER Working Papers 14-2005, ICER - International Centre for Economic Research.
  • Handle: RePEc:icr:wpicer:14-2005
    as

    Download full text from publisher

    File URL: http://www.bemservizi.unito.it/repec/icr/wp2005/ICERwp14-05.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Antonio Ruiz - Porras, 2008. "Los beneficios del liderazgo en el mercado de depositos bancarios: Una comparacion entre Cournot y Stackelberg," EconoQuantum, Revista de Economia y Finanzas, Universidad de Guadalajara, Centro Universitario de Ciencias Economico Administrativas, Departamento de Metodos Cuantitativos y Maestria en Economia., vol. 4(2), pages 79-105, Enero-Jun.
    2. Escobar Elexpuru, Gonzalo & Valdés de la Fuente, Iván, 2022. "Equilibrio en un mercado oligopólico con una firma dominante en el mercado de las tarjetas de pago [Equilibrium in an oligopoly market with a dominant firm in the payment card market]," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 33(1), pages 74-92, June.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:icr:wpicer:14-2005. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Daniele Pennesi (email available below). General contact details of provider: https://edirc.repec.org/data/icerrit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.