Skip to main content
Article thumbnail
Location of Repository

Market share dynamics and the 'persistence of leadership' debate

By John Sutton

Abstract

This 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

Topics: HB Economic Theory
Publisher: Suntory and Toyota International Centres for Economics and Related Disciplines, London School of Economics and Political Science
Year: 2004
OAI identifier: oai:eprints.lse.ac.uk:2062
Provided by: LSE Research Online

Suggested articles

Citations

  1. (1980). A Model of Stochastic Equilibrium in a Quasicompetitive Industry’,
  2. (1950). An Introduction to Probability Theory and its Applications
  3. (1994). Dynamic Models of Competition’,
  4. (1966). Higgledy Piggledy Growth Again: doi
  5. (1962). Higgledy Piggledy Growth’, doi
  6. (1995). Markov-Perfect Industry Dynamics: A irical Work; Review doi
  7. (1991). nd Market Structure Sunk Costs a , Cambridge,
  8. (1986). Profits in the Long Run , Cambridge, doi
  9. (1990). Scale and Scope: The D , doi
  10. (2002). The Scaling Puzzle’, Physica A doi

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.