The Tool for Analyzing Market Shares

and Sectors

Abstract: This method outlines a universal empirical approach that illustrates how power law curves can be used to reveal changes in economic structures and relationships. The procedure moves power law analysis from a static snapshot to something more akin to a motion picture. The approach leads to an alternative to the classic Herfindahl-Hirschman sector concentration approach. It also provides a relatively stable characteristic numerical description for each sector and market segment and eliminates the biases caused by price inflation. Collection of such segment characteristics can lead to a characteristic number, a signature, for a region’s economy or a company’s overall competitive position.