American Economic Review Vol. 97 No. 1 2007
Market Share Dynamics and the “Persistence of Leadership” Debate
Abstract
A new 45-industry, 23-year, dataset for Japan is used to investigate the duration of industry leadership. A new scaling relationship linking a firm's current market share with the standard deviation of market share changes is reported. This relationship discriminates in a powerful way between rival candidate theoretical models of market share dynamics. It also makes possible a useful simplification in testing a benchmark model of a Markovian kind. Relative to that model, it is found that at least some industries display a “Chandlerian” bias toward longer durations of leadership than would be present in the benchmark model.
- DOI
- 10.1257/aer.97.1.222
- Volume
- 97
- Issue
- 1
- Pages
- 222-241
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref