Question
can you rephrase this sentences : The definition of a superstar firm in current economic literature generally falls into one of three types, with the
can you rephrase this sentences :
The definition of a superstar firm in current economic literature generally falls into one of three types, with the corresponding evidence and some causes of the superstar effect becoming more plausible as a consequence of the definition. These three often used definition types are:
Increasing convexity of returns: Here, superstars are the largest firms in a market and capture the greatest gains in revenue share, often accompanied by higher profit margins.This is more generally termed the "Matthew Effect," summarized as "to those who have, more shall be given." While not conclusive, some drivers implicitly considered as factors in this literature are market power, global footprint, or innovation advantage.
Outsize gains relative to inputs: With this definition, superstars are firms that achieve outsize gains in market share for marginal improvements in productivity, regardless of their starting market position. Originally used in the context of individuals such as artists and athletes, the term is now used for firms and cities as well. The drivers of such a phenomenon can often be high customer switching costs or new distribution technologies such as digital platforms.
Massive economies of scale: Here, superstars are giant firms that use their size to drive productivity growth, driving down marginal costs of expansion and gaining even more market share in the process. Dating to Adam Smith, this notion has gained new relevance with the growth of hyperscale digital platforms that have near-zero marginal costs. The drivers of such superstar firms can be a combination of technological advantage, productivity growth, and market power.
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