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Excerpt from A Market Share Theorem
Marketing model builders frequently use relationships of the form them) to express the effects of us variables on purchase probability and market share. For example, Hlavac and Little [l] hypothesize that the probability a car buyer will purchase his car at a given dealer is the ratio of the dealer's attractiveness (which depends on various dealer characteristics) to the sum of the same quantities over all dealers. Urban in his new product model sprinter, makes the sales rate of a brand in a store depend on the ratio of a function of certain brand variables to the sum of such functions across brands. Kuehn and Weiss [3] make use of them) formulations in a marketing game model, as does Kotler [4] in a market simulation. Mills [5] and Friedman [6] employ models of this form in game-theoretic analyses of competition.
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