Market Share Instability and the Dynamics of Competition: a Panel Data Analysis of Japanese Manufacturing Industries

This paper explores market share instability as a measure of market mobility. Using a newly constructed panel data set, we examine the determinants of the market share instability of leading firms in Japanese manufacturing industries. The findings suggest that there is a significant relationship between concentration and market share instability, and the market shares of leading firms are more stable in highly concentrated industries. We also provide evidence that industry growth has a significantly positive effect on market share instability. Copyright Springer 2006