Working papers to watch: The myth of market share
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COMPETITOR-ORIENTED OBJECTIVES: THE MYTH OF MARKET SHARE
You run a business. An advocate of focus, you decide to put all your energies behind one pursuit. You come down to a list of two candidates:
- Strive to maximize market share
- Strive to maximize profit
Perhaps the difference is hard to see at first. They are correlated. Adherents of the “business is war” school would focus on the market share: kill the competition or it will eventually come back to get you. Economists would say focus on the profit. What to do?
Decision Science News is partial to systematic approaches to making decisions and conducting research and likes the style of this working paper which goes after the profit vs. market share question in an refreshingly clear way:
Competitor-oriented Objectives: The Myth of Market Share by J. Scott Armstrong and Kesten C. Green
