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Some facts on business dynamism among market leaders

Author

Listed:
  • Sara Calligaris
  • Chiara Criscuolo
  • Josh De Lyon
  • Andrea Greppi
  • Oliviero Pallanch

Abstract

This paper provides new evidence on three key measures of dynamism among market leaders – entrenchment, rank persistence, and market share instability – for 15 European countries between 2000 and 2019. It introduces several methodological innovations to enhance these measures: it adopts an integrated framework that examines multiple measures; it accurately defines the boundaries of the "relevant market” by defining industries at a more disaggregated level, and by considering the geographic scope of competition; and it accounts for linkages between firms within the same business group in the market. The paper shows that, while the overall level of contestability among market leaders remains fairly stable, there are also some signs of declining business dynamism. These findings on dynamism among market leaders offer a valuable complement to more traditional, static measures of competition, such as concentration and markups, thereby enriching the understanding of the competition environment.

Suggested Citation

  • Sara Calligaris & Chiara Criscuolo & Josh De Lyon & Andrea Greppi & Oliviero Pallanch, 2025. "Some facts on business dynamism among market leaders," OECD Science, Technology and Industry Working Papers 2025/07, OECD Publishing.
    • Handle: RePEc:oec:stiaaa:2025/07-en
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    More about this item

    Keywords

    Competition; Entrenchment; Market dynamism;
    All these keywords.

    JEL classification:

    • F60 - International Economics - - Economic Impacts of Globalization - - - General
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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