Do Businesses Get Stuck in the Middle? The Peril of Intermediate Market Share

Autor:	Martin Reeves, Ayca Altintig, Ekaterina V. Karniouchina, Can Uslay
Rok vydání:	2017
Předmět:	Stylized fact Labour economics Market structure Financial performance business.industry Phenomenon Economics Distribution (economics) Profitability index Sample (statistics) Market share business
Zdroj:	SSRN Electronic Journal.
ISSN:	1556-5068
DOI:	10.2139/ssrn.3043330
Popis:	The quest for stylized facts regarding market share and natural market structures is not new, however extant research has predominantly concentrated on share rank and distribution. Using a sample of 220K firm-year observations representative of the US economy over four decades, this study reexamines the relationship between market share and profitability. The results indicate that being ‘stuck in the middle’ is a prevalent and empirically generalizable phenomenon that persists decade after decade even as average industry profitability decreases. Businesses with roughly 3%-11% intermediate market share appear to be stuck in the middle between specialists and generalists and find themselves at significant financial performance disadvantages across industry groups. The relationship consistently follows a non-linear pattern which must be taken into account during research design and sampling.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::3e333659dda8f64df89647a7d48be2f4 https://doi.org/10.2139/ssrn.3043330 Zobrazit plný text záznamu