IDEAS home Printed from https://ideas.repec.org/a/inm/ormksc/v2y1983i1p75-93.html
   My bibliography  Save this article

Minimum Market Share

Author

Listed:
  • Aneel Karnani

    (The University of Michigan)

Abstract

This paper analyzes a specific model of oligopolistic competition involving product differentiation, marketing activities, and economies of scale in production. This model is consistent with sales response models which have been justified on theoretical and empirical bases. It is shown that at a Nash equilibrium each firm must have market share equal to zero or greater than a threshold value. This result has implications for determination of minimum firm size, the effectiveness of a low market share strategy, entry barriers, and the likelihood of concentration in an industry. The paper explores these implications and relates them to various theories and hypotheses in industrial organization and strategic planning.

Suggested Citation

  • Aneel Karnani, 1983. "Minimum Market Share," Marketing Science, INFORMS, vol. 2(1), pages 75-93.
    • Handle: RePEc:inm:ormksc:v:2:y:1983:i:1:p:75-93
    DOI: 10.1287/mksc.2.1.75
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mksc.2.1.75
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mksc.2.1.75?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Marco Valente, 2009. "Markets fo Heterogeneous Products: a Boundedly Rational Consumer Model," LEM Papers Series 2009/11, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    2. Mesak, Hani I. & Calloway, James A., 1995. "A pulsing model of advertising competition: A game theoretic approach, part B -- Empirical application and findings," European Journal of Operational Research, Elsevier, vol. 86(3), pages 422-433, November.
    3. Mesak, Hani I. & Ellis, T. Selwyn, 2009. "On the superiority of pulsing under a concave advertising market potential function," European Journal of Operational Research, Elsevier, vol. 194(2), pages 608-627, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormksc:v:2:y:1983:i:1:p:75-93. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.