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Equilibrium Market Share-A Measure of Competitive Strength

Aneel Karnani
Strategic Management Journal
Vol. 3, No. 1 (Jan. - Mar., 1982), pp. 43-51
Published by: Wiley
Stable URL: http://www.jstor.org/stable/2485901
Page Count: 9
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Equilibrium Market Share-A Measure of Competitive Strength
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Abstract

If an oligopoly is modelled as a non-zero-sum game, then the market shares associated with an equilibrium solution can be interpreted as measuring the competitive strength of the firms. By comparing a firm's equilibrium market share with its actual market share, one can conclude whether the firm has positive or negative growth potential in terms of market share, which has some implications for its investment strategy.

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