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Sales distribution of consumer electronics

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  • Hisano, Ryohei
  • Mizuno, Takayuki

Abstract

Using the uniform most powerful unbiased test, we observed the sales distribution of consumer electronics in Japan on a daily basis and report that it follows both a lognormal distribution and a power-law distribution and depends on the state of the market. We show that these switches occur quite often. The underlying sales dynamics found between both periods nicely matched a multiplicative process. However, even though the multiplicative term in the process displays a size-dependent relationship when a steady lognormal distribution holds, it shows a size-independent relationship when the power-law distribution holds. This difference in the underlying dynamics is responsible for the difference in the two observed distributions.

Suggested Citation

  • Hisano, Ryohei & Mizuno, Takayuki, 2011. "Sales distribution of consumer electronics," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 390(2), pages 309-318.
    • Handle: RePEc:eee:phsmap:v:390:y:2011:i:2:p:309-318
    DOI: 10.1016/j.physa.2010.09.033
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    Cited by:

    1. Fujimoto, Shouji & Ishikawa, Atushi & Mizuno, Takayuki & Watanabe, Tsutomu, 2011. "A new method for measuring tail exponents of firm size distributions," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 5, pages 1-20.
    2. Touzani, Samir & Van Buskirk, Robert, 2016. "Estimating sales and sales market share from sales rank data for consumer appliances," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 451(C), pages 266-276.
    3. Guo, Jinzhong & Xu, Qi & Chen, Qinghua & Wang, Yougui, 2013. "Firm size distribution and mobility of the top 500 firms in China, the United States and the world," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 392(13), pages 2903-2914.
    4. Andreas Hefti & Julia Lareida, 2021. "Competitive attention, Superstars and the Long Tail," ECON - Working Papers 383, Department of Economics - University of Zurich.
    5. Marco Bee, 2020. "On discriminating between lognormal and Pareto tail: A mixture-based approach," DEM Working Papers 2020/9, Department of Economics and Management.
    6. Fujimoto, S. & Ishikawa, A. & Mizuno, T. & Watanabe, T. & 渡辺, 努 & ワタナベ, ツトム, 2011. "A New Method for Measuring Tail Exponents of Firm Size Distributions," Working Paper Series 7, Center for Interfirm Network, Institute of Economic Research, Hitotsubashi University.
    7. Fujimoto, Shouji & Ishikawa, Atushi & Mizuno, Takayuki & Watanabe, Tsutomu, 2011. "A new method for measuring tail exponents of firm size distributions," Economics Discussion Papers 2011-29, Kiel Institute for the World Economy (IfW Kiel).

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