Logically consistent market share models

Naert Philippe A, Alain V Blutez

Description

LOGICALLY CONSISTENT MARKET SHARE MODELS 607-72 Philippe A. Naert* and Alain V. Bultez** June, 1972 MASSACHUSETTS INSTITUTE OF TECHNOLOGY 50 MEMORIAL DRIVE IHGE. MASSACHUSETTS 02 MODELSLOGICALLY CONSISTENT MARKET SHARE 607-72 Philippe A. Naert* V. Bultez**and Alain June, 1972 Assistant Professor of Management Science, Alfred SloanP. School of Management, M.I.T. ** Special Doctoral Student, Alfred P. Sloan School of Management M.I.T. 00 IX" RECEIVED 1973MAR 7 LIBRARIESM. T.I. INTRODUCTION A logically consistent market share model should predict market shares that are between zero and one, and sum to one. Few authors have worried about this type of problem in empirical studies, mainly because of the usual interest in a particular brand. It is then implicitly assumed that if pre- dicted market share that brand MS the other firms com-for is , -bined will . This seem obvious, yet itget (1 MS ) may pretty is not. If we were estimate the market share response functionsto for the other brands as well, we would often find that the sum the The problem becomes particularlyof market shares is not one. apparent when response functions for all brandsto the reader the constantare estimated simultaneously. We will therefore make issuereference to an article by Neil E. Beckwith in a recent of JMR in which he reported an application of the joint[2], generalized least squares method (joint GLS) to the estima-[15] tion of linear market share response functions of various com- peting brands.

Sujets

• Market segmentation
• Mathematical model

Informations

• Publié par: les_archives_du_savoir
• Nombre de lectures: 5
• Langue: English
• Poids de l'ouvrage: 1 Mo

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