Market Share and Leadership Instability in Antitrust Analysis a Primer

Main Article Content

Marcos André Mattos de Lima
Marcelo Resende de Mendonça e Silva

Abstract

The paper aims at outlining the main empirical approaches for assessing market share dynamics. Those embody distinct levels of detail and include generic stationary tests for relative market shares, broader leadership turnover indicators and yet leadership convergence assessments between specific firms in a given industry. The potential role of market share dynamics in competition policy is discussed and tentative guidelines are suggested.

Downloads

Download data is not yet available.

Article Details

How to Cite
Mattos de Lima, M. A., & Resende de Mendonça e Silva, M. (2023). Market Share and Leadership Instability in Antitrust Analysis: a Primer. Revista Do IBRAC, (1), 395–410. Retrieved from https://revista.ibrac.org.br/index.php/revista/article/view/72
Section
Prêmio IBRAC TIM 2024 categoria pós-graduação/profissional

References

Bartholomew, D. (1973), Stochastic Models for Social Processes, 2nd ed., London: Wiley.

Bird, K. (2002), Advertise or die: advertising and market share dynamics revisited, Applied Economics Letters, 9, 763-767.

Breitung, J., Das, S. (2005), Panel unit root tests under cross-sectional dependence, Statistica Neerlandica, 59, 414–433.

Breuer, J.B., McNown, R., Wallace, M.S. (2001), Misleading inferences from panel unit-root tests with an illustration from purchasing power parity, Review of International Econonomics. 9, 482-493.

Buzzell, R.D., Gale, B.T., Sultan, R.G.N. (1975), Market share-a key to profitability, Harvard Business Review, 97-106.

Cable, J. R. (1997), Market share behavior and mobility: an analysis and time-series application, Review of Economics and Statistics, 79, 136–41.

CADE (2016), Guia de Análise para Atos de Concentração Industrial, http://www.cade.gov.br/acesso-a-informacao/publicacoes-institucionais/guias_do_Cade/guia-para-analise-de-atos-de-concentracao-horizontal.pdf.

Chu, H.P., Yeh, M.L., Sher, P.J., Chiu, Y.C. (2007), Will the leading firm continue to dominate the market in the Taiwan notebook industry?, Physica A, 383, 473-479.

Das , B.J., Chappell, W.F., Shughartii, W.F. (1993), Advertising, competition and market share instability, Applied Economics, 25, 1409-1412.

Deneckere, R., Kovenock, D., Lee, R. (1992), A model of price leadership based on consumer loyalty, Journal of Industrial Economics, 40, 147-156.

Eckard, E.W. (1987), Advertising, competition, and market share instability, Journal of Business, 60, 539-55.

Gallet, C. A., List, J. A. (2001), Market share instability: an application of unit root tests for the cigarette industry, Journal of Economics and Business, 53, 473–80.

Geroski, P.A. (1991), Market Dynamics and Entry, Blackwell: Oxford.

Geroski, P. A., Toker, S. (1996), The turnover of market leaders in the UK manufacturing industry, 1979-1986, International Journal of Industrial Organization, 14, 141–58.

Glen, J., Lee, K., Singh, A. (2001), Persistence of profitability and competition in emerging markets. Economics Letters, 72, 257-253.

Gengenbach, C., Palm, F.C., Urbain, J.P. (2010), Panel unit root tests in the presence of cross-sectional dependencies: comparison and implications for modeling, Econometric Reviews, 29, 111-145.

Gruber, H. (1992), Persistence of leadership in product innovation, Journal of Industrial Economics, 40, 359-379.

Hirsch, S. (2018), Successful in the long run: a meta-regression analysis of persistent firm profits, Journal of Economic Surveys, 32, 23-49.

Hymer, A., Pashigian, P. (1962), Turnover of firms as a measure of market behavior, Review of Economics and Statistics, 44, 82-87.

Im, K.S., Pesaran, M.H., Shin, Y. (2003), Testing for unit roots in heterogeneous panels, Journal of Econometrics, 115, 53-74.

Kaplan, E.L., Meier, P. (1958), Nonparametric estimation from incomplete observations, Journal of the American Statistical Association, 53, 457-481.

Kato, M., Honjo, Y. (2006), Market share instability and the dynamics of competition: a panel data analysis of Japanese manufacturing industries, Review of Industrial Organization, 28, 165-182.

Klemperer, P. (1995), Competition when consumers have switching costs: an overview with applications to industrial organization, macroeconomics, and international trade, Review of Economic Studies, 62, 515-39.

Lima, M.A.M., Resende, M. (2004), Firm leadership stability in the Brazilian industry: an empirical note, Economia Aplicada, 8, 605-618.

Mueller, D.C. (1986), Profits in the Long Run, Cambridge, New York, and Sydney: Cambridge University Press.

Nowak-Lehmann, F., Herzer, D.,Vollmer, S., Martínez-Zarzoso, I. (2011), Modelling the dynamics of market shares in a pooled data setting: econometric and empirical issues, Applied Economics, 43, 823-835.

Resende, M. (2006), Profit persistence in Brazil: a panel data study, Estudos Econômicos, 36, 115-126.

Resende, M., Lima, M.A.M. (2005), Market share instability in Brazilian industry: a dynamic panel data analysis, Applied Economics, 37, 713-718.

Resende, M., Penido P.A., Valente, P.O. (2020), Switching Costs in the Brazilian airline sector, International Journal of the Economics of Business, 27, 321-339.

Sarafidis, V., Wansbeek, T. (2012), Cross-sectional dependence in panel data analysis, Econometric Reviews, 31, 483-531.

Sutton, J. (2007), Market share dynamics and the “persistence of leadership” debate, American Economic Review, 97, 222-241.