Market Share Distribution Research Articles

CLUSTERING DYNAMICS WITHIN THE CULTURAL INDUSTRIES: THE CASE OF CALI-COLOMBIA

The primary objective of this paper is to provide relevant information, from a microeconomic perspective, for the decision-making process followed by entrepreneurs interested in being part of the cultural industries (IC) in the city of Cali, Colombia. To that end, we will make use of a data clustering technique and the Herfindahl Index, to measure the dynamics of agglomeration within the IC, according to their absolute and average sales volume, the concentration of market power and the number of employees hired in average by each cultural subsector. We found that there is a strong asymmetry in the distribution of market share within the majority of cultural activities and a clear division of clusters of cultural subsectors whose behavior is similar for each variable analyzed.

Особенности и перспективы отечественного рынка древесного биотоплива на фоне мировых тенденций

The aim of this study is to review the global trends in bioenergy, and then in the light of these developments to assess the potential, development trends and drivers of the biofuel market growth in Russia, highlight key players and assess the concentration in this market. The authors focus on the most developed sector of bioenergy – solid biofuel (fuel pellets). On the basis of the Concentration ratio, the Herfindahl-Hirschman and Hall-Tideman indices the authors estimate the concentration in this market. The results lead to the conclusion that the market is moderately concentrated, but has a tendency to concentration downturn. The Lorenz curve serves as a visual representation of the erratical distribution of market share between producers. The study draws on the data of the International Energy Agency, the European Biogas Association, the Russian Federal State Statistics Service, the Customs Service of Russia, FAOSTAT, recent data provided by the media.

How Differently Does Oil Price Influence BRICS Stock Markets?

This article explores the strength and extent of causal relationship between BRICS (Brazil, Russia, India, China and South Africa) stock returns and real oil price using frequency domain approach of Breitung and Candelon (2006). This technique offers an appropriate alternative tool by investigating the causality in frequency domain, while standard causality tests focus only on the time domain. Using 1998-2015 quarterly data, we show that the impact of oil price on stock returns is not uniform across the investigated countries. Even though the slowly (quickly) fluctuating components of oil price exert a significant influence on real stock returns in Brazil and Russia (India and South Africa), medium and long term hidden factors were found as potential contributors of Chinese share market. The oil dependence profile, the distribution of market share between companies, the financial system efficiency and the effectiveness of regulation in securities markets have been offered to explain the heterogeneous responses of BRICS equities.

A Novel Approach to Probability

When P indistinguishable balls are randomly distributed among L distinguishable boxes, and considering the dense system , our natural intuition tells us that the box with the average number of balls P/L has the highest probability and that none of boxes are empty; however in reality, the probability of the empty box is always the highest. This fact is with contradistinction to sparse system (i.e. energy distribution in gas) in which the average value has the highest probability. Here we show that when we postulate the requirement that all possible configurations of balls in the boxes have equal probabilities, a realistic “long tail” distribution is obtained. This formalism when applied for sparse systems converges to distributions in which the average is preferred. We calculate some of the distributions resulted from this postulate and obtain most of the known distributions in nature, namely: Zipf’s law, Benford’s law, particles energy distributions, and more. Further generalization of this novel approach yields not only much better predictions for elections, polls, market share distribution among competing companies and so forth, but also a compelling probabilistic explanation for Planck’s famous empirical finding that the energy of a photon is hv.

The limitations of competition in the insurance markets of Slovenia, Croatia and Serbia

The article analyses the situation in the insurance markets of Slovenia, Croatia, and Serbia in order to provide the insight into the limitation of competition. The study of the limitation of competition was conducted using the theoretically founded indicators of concentration and inequality as follows: Concentration ratio, Herfindahl-Hirschman index, Lorenz curve, Gini coefficient, and Entropy index. The indicators were calculated for all the countries between 2004 and 2011. By comparatively analysing the obtained values of the indicators of concentration and inequality, we came to the conclusion that all three markets are characterised by a similar movement of the indicator, as well as that Croatian market, despite the relatively uneven market share distribution between individual companies, is more competitive than the other two.

Distribution and Market Share

This paper presents findings from a census of more than 79,000 stock-keeping units (SKUs) in 37 consumer packaged goods categories totaling $55 billion in annual revenue. It shows that, in 86 percent of product categories, the relationship between market share and retail distribution is increasing and convex at the SKU level. The degree of convexity is greater in categories with higher revenues and more concentration in market shares. The relationship is also typically convex within leading brands’ SKU portfolios, showing that the “double jeopardy” phenomenon of low share and distribution not only affects small brands competing against market leaders, it also affects low-share SKUs within a category leader's product line. Holdout evidence shows that the distribution/share relationship within a brand's portfolio of existing SKUs usually holds for new SKUs as well. We explain how knowledge of the distribution/share relationship can help to improve a brand's go-to-market decisions for new SKUs.

A Technique to Assess Managers' Pre-Launch Distribution Assumptions for New SKUs

This paper presents findings from a census of more than 79,000 stock-keeping units (SKUs) in 37 consumer packaged goods categories totaling $55 billion in annual revenue. It shows that, in 86% of product categories, the relationship between market share and retail distribution is increasing and convex at the SKU level. The degree of convexity is greater in categories with higher revenues and more concentration in market shares. The relationship is also typically convex within leading brands’ SKU portfolios, showing that the “double jeopardy” phenomenon of low share and distribution not only affects small brands competing against market leaders, it also affects low-share SKUs within a category leader’s product line. Holdout evidence shows that the distribution/share relationship within a brand’s portfolio of existing SKUs usually holds for new SKUs as well. We explain how knowledge of the distribution/share relationship can help to improve a brand’s go-to-market decisions for new SKUs.

Abstract P5-15-05: Budget impact analysis of everolimus for estrogen receptor positive, human epidermal growth factor receptor-2 negative metastatic breast cancer patients in the United States

Abstract BACKGROUND: A phase III randomized clinical trial demonstrated significantly longer progression-free survival of everolimus and exemestane combination therapy compared to exemestane alone in postmenopausal women with estrogen receptor positive (ER+), human epidermal growth factor receptor-2 negative (HER2−) metastatic breast cancer (MBC) who failed letrozole or anastrozole. This study estimates the budget impact of adding everolimus as the first or second treatment after failure of letrozole or anastrozole for post-menopausal, ER+ HER2− MBC patients from a third-party payer perspective in the United States. METHODS: Pharmacy and medical budget impacts were estimated over the first year of everolimus use in this indication. Published epidemiology data were used to estimate target population size. Market share was assumed to be divided between exemestane, fulvestrant and tamoxifen before everolimus entry based on market research data on file. Market share of combination therapy of everolimus and exemestane was assumed to increase linearly during the one-year period and replace 10% of overall market share by the end of the year, proportional to the pre-entry market share distribution of the other three treatments. Pharmacy budget inputs (wholesale acquisition cost of the therapies, daily dose, treatment duration, dispensing fee and copayment) were obtained from published and unpublished sources. Patients were assumed to be on treatment until progression or death. Medical costs were estimated as the average costs before and after progression, weighted by time in each state and adjusted for survival. Pre- and post-progression costs, time to progression and survival rates were derived from published literature. Compliance was assumed to be 100% until progression and adverse events were not considered. All costs were reported in 2011 US dollars. RESULTS: In a hypothetical health plan with 1 million members, there would be 72 patients expected to use one of the study drugs (exemestane, tamoxifen, fulvestrant or everolimus+exemestane) as the first treatment option immediately after letrozole or anastrozole failure, and 159 expected to use one of the study drugs as the second treatment option after letrozole or anastrozole failure. For the first treatment option after letrozole or anastrozole failure, total budget impact was $0.013 per member per month (PMPM), including a $0.017 PMPM increase to the pharmacy budget and $0.004 PMPM decrease to the medical budget one year after everolimus entry. For the second treatment option after letrozole or anastrozole failure, total budget impact was $0.029 PMPM, including a $0.037 PMPM increase to the pharmacy budget and $0.009 PMPM decrease to the medical budget one year after everolimus entry. Total budget impact was $0.042 PMPM, including a $0.055 PMPM increase to the pharmacy budget and $0.013 PMPM decrease to the medical budget one year after everolimus entry. CONCLUSION: Use of everolimus for ER+, HER2− MBC is expected to reduce the medical budget due to improved efficacy but increase the pharmacy budget due to higher drug cost. The total budget impact is relatively small. Citation Information: Cancer Res 2012;72(24 Suppl):Abstract nr P5-15-05.

Market Share and Product Distribution: Re-Tested and Extended

In Marketing Science’s review of empirical generalizations in marketing, Reibstein and Farris (1995) provide a model for the relationship of market share (MS) and product distribution (D). The relationship is generally convex, with high share brands having more share points per point of distribution. This paper tests this relationship across many categories and across six years from IRI’s Infoscan Reviews database. Most, but not all, categories follow the general pattern. We present evidence on the generality of the model, show how many consumer packaged goods categories follow the general pattern, show how stable the model is when estimated for multiple cross-sections, and assess whether cross-sectional convex models are consistent with changes seen over time for brands with substantial changes in share and/or distribution. We investigate alternative models incorporating both breadth and depth of distribution and show these provide more insight and better prediction.

Approaches for Industry Upgrade of Chinese Pharmaceutical Enterprises Based on Relevant Cases from Developing Countries

The purpose of this article is to provide suggestions regarding how to avoid possible problems during the process of entering international market and improving innovation ability. Based on collected cases of obstructions that some Indian producers encountered during the process of industry upgrade in recent years and reasons of these obstructions. Some suggestions for Chinese pharmaceutical enterprises were provided. It had been found that patent dispute, drug quality issue, inaccurate market positioning and uneven recourses distributions are four major obstructions for Chinese generic drug producers. It is suggested that Chinese pharmaceutical enterprises should cooperate with multi-national pharmaceutical companies regarding patent issue, pay attention to drug quality monitoring during drug manufacturing, focus on long-term aboard market share and balance resource distribution between imitation and innovation departments inside enterprises.

COMPETITIVE CONDITIONS IN BANKING INDUSTRY: AN EMPIRICAL ANALYSIS OF THE CONSOLIDATION, COMPETITION AND CONCENTRATION IN THE INDONESIA BANKING INDUSTRY BETWEEN 2001 AND 2009

Few large banks dominate the Indonesia banking industri. Furthermore, in the past ten years, there were a series of mergers and acquisitions in the banking market. The facts cause implications on competition. In this paper, we examine these issues exploiting an unconsolidated annual financial report of all commercial banks between 2001 and 2009. The Panzar-Rose method is employed to examine the banks behavior in competition. Estimates indicate that banks in all three subsamples, large; medium-sized and small are working in a monopolistically competitive market. The analysis of market concentration supports the conventional view that concentration impairs competition. The study shows that the most competitive market was the medium-sized banks because it was least concentrated. In contrast, the large market was more concentrated thus it was less competitive. The consolidation policies driven by the Central Bank reduced market concentration because mergers and acquisitions were mostly conducted by the mediumsized and small banks. Further the improvement of market share distribution and the increasing capacity of the merging banks enhanced competition in the Indonesia banking industry. JEL Classification: D43, G21Keywords: Banking, market competition, market structure

COMPETITIVE CONDITIONS IN BANKING INDUSTRY: AN EMPIRICAL ANALYSIS OF THE CONSOLIDATION, COMPETITION AND CONCENTRATION IN THE INDONESIA BANKING INDUSTRY BETWEEN 2001 AND 2009

Few large banks dominate the Indonesia banking industri. Furthermore, in the past ten years, there were a series of mergers and acquisitions in the banking market. The facts cause implications on competition. In this paper, we examine these issues exploiting an unconsolidated annual financial report of all commercial banks between 2001 and 2009. The Panzar-Rose method is employed to examine the banks behavior in competition. Estimates indicate that banks in all three subsamples, large; medium-sized and small are working in a monopolistically competitive market. The analysis of market concentration supports the conventional view that concentration impairs competition. The study shows that the most competitive market was the medium-sized banks because it was least concentrated. In contrast, the large market was more concentrated thus it was less competitive. The consolidation policies driven by the Central Bank reduced market concentration because mergers and acquisitions were mostly conducted by the mediumsized and small banks. Further the improvement of market share distribution and the increasing capacity of the merging banks enhanced competition in the Indonesia banking industry.JEL Classification: D43, G21Keywords: Banking, market competition, market structure

Cubic Distribution of Market Share

Zipf distribution is known to describe various natural and social phenomena, including size of starts, city populations, words frequency in literature, immune systems, and size of firms. In this paper we show that market shares in the world cola-drink market follows a special kind of skewed distribution, which we call cubic distribution.

Business Informality in Colombia: An Obstacle for Creative Destruction

This document studies the effects of business informality in terms of distortions in resource absorption, particularly labor, by informal companies. It also assesses the consequences of lower demand for labor of informal firms over aggregate productivity. With firm level data from the DANE Micro-establishments Survey, a matching exercise between formal and informal firms is conducted. It was found that the latter hire fewer employees than formal firms with the same characteristics, including Total Factor Productivity. The matching results allow using counterfactual demands of labor of informal firms to calculate and compare the real and counterfactual aggregate productivity levels. The results indicate that if informal firms would demand the amount of employment demanded by similar formal firms, market share distribution of firms would improve and this would positively affect aggregate productivity.

Dynamics of market structure driven by the degree of consumer’s rationality

We study a simple model of market share dynamics with boundedly rational consumers and firms interacting with each other. As the number of consumers is large, we employ a statistical description to represent firms’ distribution of consumer share, which is characterized by a single parameter representing how rationally the mass of consumers pursue higher utility. As the boundedly rational firm does not know the shape of demand function it faces, it revises production and price so as to raise its profit with the aid of a simple reinforcement learning rule. Simulation results show that (1) three phases of market structure, i.e. the uniform share phase, the oligopolistic phase, and the monopolistic phase, appear depending upon how rational consumers are, and (2) in an oligopolistic phase, the market share distribution of firms follows Zipf’s law and the growth-rate distribution of firms follows Gibrat’s law, and (3) an oligopolistic phase is the best state of market in terms of consumers’ utility but brings the minimum profit to the firms because of severe competition based on the moderate rationality of consumers.

Peripheral arterial interventions: Trends in market share and outcomes by specialty, 1998-2005

Vascular surgeons (VS), interventional cardiologists (IC), and interventional radiologists (IR) perform peripheral arterial interventions (PAI). In this study, we reviewed market share trends and compared outcomes for each specialty using the National Inpatient Sample (NIS). Patient discharges for PAI (1998-2005) were identified based on ICD9-CM procedure codes. The provider's specialty was identified by a specialty-specific algorithm and analyzed using SAS 9.1 (SAS Institute, Cary, NC). Market share trends and distribution of cases at teaching versus non-teaching hospitals were evaluated. Primary outcome measures were in-hospital mortality and iatrogenic arterial injuries (IAI). Multivariate logistic regression was performed to identify independent predictors of post-procedure morbidity and mortality. The number of cases identified was 23,825. From 1998 to 2005, IR's market share decreased six-fold (1998: 33% to 2005: 5.6%) whereas VS market share increased from 27% to 43% and IC from 10% to 29% (P < .05). A similar but more pronounced trend was observed at teaching hospitals. In-hospital mortality rate was highest for IR (2.1 IR% vs 1.2% VS and 0.6% IC; P < .001). Post-procedure IAI was highest in the IC group (1.3% vs IR 0.9% and 0.5% VS; P < .05). Compared with VS, the mortality rate was 1.62 times higher for IR patients (odds ratio [OR]: 1.62, 95% confidence interval [CI]: 1.16-2.24) and IAI was 2.44 times higher for IC (OR: 2.44, 95% CI: 1.63-3.66) and 1.75 times higher for IR (OR: 1.75, 95% CI: 1.08-2.81) patients. IR market share of PAI has precipitously declined while those of VS and IC have increased significantly. Vascular surgeons had the lowest overall morbidity and mortality of all groups. Increase in the number of endovascularly-trained VS with better access to fluoroscopy units may further increase VS's market share.

The Complex Dynamics of Sponsored Search Advertising Markets

This paper provides a comprehensive study of the structure and dynamics of online advertising markets, mostly based on techniques from the emergent discipline of complex systems analysis. First, we look at how the display rank of a URL link influences its click frequency, for both sponsored search and organic search. Second, we study the market structure that emerges from these queries, especially the market share distribution of different advertisers. We show that the sponsored search market is highly concentrated, with less than 5% of all advertisers receiving over 2/3 of the clicks in the market. Furthermore, we show that both the number of ad impressions and the number of clicks follow power law distributions of approximately the same coefficient. However, we find this result does not hold when studying the same distribution of clicks per rank position, which shows considerable variance, most likely due to the way advertisers divide their budget on different keywords. Finally, we turn our attention to how such sponsored search data could be used to provide decision support tools for bidding for combinations of keywords. We provide a method to visualize keywords of interest in graphical form, as well as a method to partition these graphs to obtain desirable subsets of search terms.

Inter-industry differences in profitability: the legacy of the structure-efficiency debate revisited

This study presents a simple model on the sources of inter-industry variation in profitability and tests its empirical implications in order to shed new light on the long-lasting debate over industry profitability. The model identifies four key factors that jointly influence an industry's price-cost margin: (i) the intensity of strategic investment (e.g. R&D and advertising), (ii) the skewness of the distribution of market share or market concentration, (iii) the appropriability of strategic investment, and (iv) the extent to which firms' market shares are determined by the intensity of their strategic investment. These factors are expected to be positively related to industry profitability, and our empirical analysis provides supportive evidence. The model also suggests that the conventional, single-dimensional hypotheses on profitability-the market-power (or market-structure) hypothesis and the efficiency hypothesis-are overly simplified. More importantly, existing empirical results allegedly supporting each of these hypotheses are spurious to the extent that the distribution of firm-specific strategic competence reflects firm heterogeneity in efficiency and, at the same time, underlies the distribution of market share or market concentration. Copyright 2009 , Oxford University Press.

Strategies in Financial Services, the Shareholders and the System: Is Bigger and Broader Better?

The classic structure-conduct-performance approach to industrial organization centers on three questions. First, why is does an industry look the way it does, in terms of numbers of competitors, market share distribution and various other metrics? Second, how do firms actually compete, in terms the formation of prices, product and service quality, rivalry and collaboration within and across strategic groups, and other attributes of economic behavior? And third, how does the industry perform for its shareholders, its employees, its clients and suppliers, and within the context the system as a whole in terms of its impact on income and growth, stability, and possibly less clearly defined ideas about such things as social equity? In the financial services industry, these same questions have attracted more than the normal degree of attention. The industry is special in a variety of ways, including the fiduciary nature of the business, its role at the center of the payments and capital allocation process with all its static and dynamic implications for economic performance, and the systemic nature of problems that can arise in the industry. So the structure, conduct and performance of the industry have unusually important public interest dimensions. One facet of the discussion has focused on size of financial firms, however measured, and the range of activities conducted by them. Exhibit 1 depicts a taxonomy of broad-gauge financial services businesses. What are the strategic opportunities and competitive consequences of deepening and broadening a firmâ¬s business within and between the four sectors and eight sub-sectors? Is size positively related to total returns to shareholders? If so, does this involve gains in efficiency or transfers of wealth to shareholders from other constituencies, or maybe both? Does greater breadth generate sufficient information-cost and transaction-cost economies to be beneficial to shareholders and customers, or can it work against their interests in ways that may ultimately impede shareholder value as well? And what about the â¬Sspecialness,â¬? notably the industry's fiduciary character and systemic risk -- is bigger and broader also safer? This paper begins with a simple strategic framework for thinking about these issues from the perspective of the management of financial firms. What should they be trying to do, and how does this relate to the issues of size and breadth? It then reviews the available evidence and reaches a set of tentative conclusions from what we know so far, both from a shareholder perspective and that of the financial system as a whole.

Long Tails and Localized Increasing Returns

In this paper, I develop a simple model of consumer choice that demonstrates why a market with increasing returns may not converge to a winner-take-all outcome and can even support a Long Tail of small share products. Consumers choose products by first limiting their choice to a subset of options in order to satisfy product characteristic requirements or to reduce the information costs of their decision, and then selecting from this feasible set based on a combination of individual preferences and increasing returns to sales. The critical factor in determining the shape of the market share distribution is the distribution of feasible set sizes. In most cases, the resulting distribution of shares follows a power law. The implications of the model for market efficiency and predictability are also examined.