Market Dominance: How Firms Gain, Hold, Or Lose it and the Impact on Economic Performance

Market Dominance: How Firms Gain, Hold, Or Lose it and the Impact on Economic Performance
ISBN-10
0275956040
ISBN-13
9780275956042
Category
Big business
Pages
274
Language
English
Published
1998
Publisher
Greenwood Publishing Group
Author
David Ira Rosenbaum

Description

Economic theorizing suggests that firms can acquire and maintain market dominance in a number of ways. Some economists argue that firms attain dominance only by being relatively more efficient than their rivals and retain leadership only by staying more efficient than their rivals. Others argue that efficiency is not the only source of dominance and that leaders can retain ascendancy even if they are inefficient. This book attempts to sort out the relevant points by exploring market dominance as it has been experienced by firms in ten different industries. The results suggest that both schools make valid points. While firms generally used efficient strategies to reach preeminence, some chose predatory policies to gain market share. While all used assorted efficient strategies to maintain their dominance, many remained dominant long after their efficiencies had evaporated.

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