A note on inertia in market share |
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| Affiliation: | 1. Department of Economics, University of Konstanz, P.O. Box 135, D-78457 Konstanz, Germany;2. Faculty of Economics and Management, Otto-von-Guericke-University Magdeburg, P.O. Box 4120, D-39016 Magdeburg, Germany;1. Academy of Biology and Biotechnology, Southern Federal University, Rostov-on-Don, Russian Federation;2. Ondokuz Mayıs University, Faculty of Agriculture, Department of Soil Science & Plant Nutrition, Samsun, Turkey;3. Agrobigen R&D Ltd.Co. Samsun Technopark, Ondokuz Mayıs University, Samsun, Turkey |
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| Abstract: | In a simple model in which market share displays inertia, I show that a larger firm will always charge a higher price and make more profits than its smaller rival, but its market share will remain larger than its rival's. |
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