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Strategic Implications of Market Share Attraction Models


  • Aneel Karnani

    (Graduate School of Business Administration, The University of Michigan, Ann Arbor, Michigan 48109)


Market share attraction models, which specify that a firm's market share is equal to the ratio of its "attraction" to the total attraction for all firms, have received increasing attention in recent years. However, there has been little research investigating the practical implications of such models. This paper presents a game-theoretic analysis of such a model and deduces the strategic implications of a Nash equilibrium solution to the model. It is shown that these implications are consistent with previous empirical research in marketing and business policy.

Suggested Citation

  • Aneel Karnani, 1985. "Strategic Implications of Market Share Attraction Models," Management Science, INFORMS, vol. 31(5), pages 536-547, May.
  • Handle: RePEc:inm:ormnsc:v:31:y:1985:i:5:p:536-547

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    Cited by:

    1. Gadhoum, Yoser, 1999. "Potential effects of managers' entrenchment and shareholdings on competitiveness," European Journal of Operational Research, Elsevier, vol. 118(2), pages 332-349, October.
    2. Souza, Gilvan C., 2004. "Product introduction decisions in a duopoly," European Journal of Operational Research, Elsevier, vol. 152(3), pages 745-757, February.
    3. repec:pal:jorsoc:v:60:y:2009:i:9:d:10.1057_palgrave.jors.2602646 is not listed on IDEAS
    4. 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.
    5. Gérard P. Cachon & A. Gürhan Kök, 2007. "Category Management and Coordination in Retail Assortment Planning in the Presence of Basket Shopping Consumers," Management Science, INFORMS, vol. 53(6), pages 934-951, June.
    6. Gérard P. Cachon & Christian Terwiesch & Yi Xu, 2008. "On the Effects of Consumer Search and Firm Entry in a Multiproduct Competitive Market," Marketing Science, INFORMS, vol. 27(3), pages 461-473, 05-06.
    7. Wilson, William W. & Yang, Seung-Ryong, 1994. "Impacts of Wheat Export Strategies on Market Shares," Agricultural Economics Reports 23387, North Dakota State University, Department of Agribusiness and Applied Economics.
    8. Aravindakshan Ashwin & Ratchford Brian, 2011. "Solving Share Equations in Logit Models Using the LambertW Function," Review of Marketing Science, De Gruyter, vol. 9(1), pages 1-19, April.
    9. Awi Federgruen & Nan Yang, 2009. "Competition Under Generalized Attraction Models: Applications to Quality Competition Under Yield Uncertainty," Management Science, INFORMS, vol. 55(12), pages 2028-2043, December.
    10. Noah Gans, 2002. "Customer Loyalty and Supplier Quality Competition," Management Science, INFORMS, vol. 48(2), pages 207-221, February.
    11. Li, Yuan & Deng, Shengliang, 1999. "A methodology for competitive advantage analysis and strategy formulation: An example in a transitional economy," European Journal of Operational Research, Elsevier, vol. 118(2), pages 259-270, October.
    12. Suman Basuroy & Dung Nguyen, 1998. "Multinomial Logit Market Share Models: Equilibrium Characteristics and Strategic Implications," Management Science, INFORMS, vol. 44(10), pages 1396-1408, October.


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