Market Share Dynamics and the Persistence of Leadership Debate

51 Pages Posted: 11 Jul 2008

See all articles by John Sutton

John Sutton

London School of Economics & Political Science (LSE) - Department of Economics

Date Written: January 2004

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.

JEL Classification: L10, L60

Suggested Citation

Sutton, John, Market Share Dynamics and the Persistence of Leadership Debate (January 2004). LSE STICERD Research Paper No. EI37. Available at SSRN: https://ssrn.com/abstract=1158314

John Sutton (Contact Author)

London School of Economics & Political Science (LSE) - Department of Economics ( email )

Houghton Street
London WC2A 2AE
United Kingdom

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