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Specification and empirical evaluation of a cluster-asymmetry market share model

Author

Listed:
  • Piet Vanden Abeele

    (Department of Microbiology and Immunology - Catholic University of Leuven - Catholic University Hospitals - Clinical Immunology)

  • Els Gijsbrechts

    (UA - University of Antwerp)

  • Marc Vanhuele

    (Anderson Graduate School of Management, UCLA - UCLA - University of California [Los Angeles] - UC - University of California)

Abstract

Asymmetric models of market share response allow for specific cross-competitive effects between competitors. Various approaches have been suggested for building asymmetric market share models preserving the properties of logical consistency (i.e., respecting the sum and range constraints on market share) of the popular attraction formulation, including the recent "fully extended" attraction specification by Carpenter et al. (1988). It is argued that these approaches suffer from a number of theoretical or practical difficulties. Using the Nested Logit model as a source of inspiration, this paper introduces a simple and tractable cluster-asymmetric attraction specification for market share response and discusses its properties. The model is also shown to be related to the Cooper et al. approach. The specification is applied and evaluated in the context of a consumer appliance example.

Suggested Citation

  • Piet Vanden Abeele & Els Gijsbrechts & Marc Vanhuele, 1990. "Specification and empirical evaluation of a cluster-asymmetry market share model," Post-Print hal-00481971, HAL.
    • Handle: RePEc:hal:journl:hal-00481971
    DOI: 10.1016/0167-8116(90)90001-4
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    Citations

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    Cited by:

    1. Hruschka, Harald, 2002. "Market share analysis using semi-parametric attraction models," European Journal of Operational Research, Elsevier, vol. 138(1), pages 212-225, April.
    2. Koen Pauwels & Richard D’Aveni, 2016. "The formation, evolution and replacement of price–quality relationships," Journal of the Academy of Marketing Science, Springer, vol. 44(1), pages 46-65, January.
    3. Sharifah Sakinah Aidid & Mick Silver, 1999. "Modelling market shares by segments using volatility," Journal of Applied Statistics, Taylor & Francis Journals, vol. 26(5), pages 643-660.
    4. Krishnamurthi, Lakshman & Raj, S. P. & Sivakumar, K., 1995. "Unique inter-brand effects of price on brand choice," Journal of Business Research, Elsevier, vol. 34(1), pages 47-56, September.
    5. Gielens, Katrijn & Gijsbrechts, Els & Dekimpe, Marnik G., 2014. "Gains and losses of exclusivity in grocery retailing," International Journal of Research in Marketing, Elsevier, vol. 31(3), pages 239-252.

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