Dummy variables

[Dailu Shi]

Dear all,

I have a panel data (long data), shown below.

Firm name	Year	Firm value	Dummy
A	1
B	1
C	1
A	2
B	2
C	2
A	3
B	3
C	3

I want to construct a dummy. Rank the firm based on their firm value at Year2.
The dummy takes 1, if the bank ranked at top 1 at Year2.
The dummy takes 0, if it is the lowest one.
Could anyone help me with this issue?

Thank you!!!

[William Lisowski]

I believe that for each firm, you want the dummy to be 1 for all three years if the value in year 2 is the largest of the three values, and 0 if it is the smallest of the three values.

What if the value in year 2 is neither the largest nor the smallest of the three values?

What if there is a tie: for example, years 1 and 2 both have the same value, and it is the largest? or what if the two identical values are the smallest?

What if all three years have the same value?