A General Theory of Market Competition - M Theory

DOI

10.2991/icassr.2013.63How to use a DOI?

Keywords

Market Share and Profit, General Theory of Market Competition, M Theory, Market-share Trap, PIMS

Abstract

We elaborate the firm theory on market structures (with consideration of behavioural doctrine, industry- and firm-specific features) into a General Theory of Market Competition (or M Theory for easy referring) to explore and construct a clearer and more complete theory on essence of the market competition, which encompasses firms’ profit-market share relations, the prime subject of PIMS. The General Theory reconciles roughly three-decade disputing arguments and empirical figures on market share-firm’s profit relations. M theory upholds positive market share-profit relations, with exception of what we call Market-share Trap where the positive relations is not held or uncertain. We also undertake an empirical study on the global IC foundry industry; the result of positive relations between market share and firm’s return is consistent with M theory.

Copyright

© 2013, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Chih-Hung Yeh
AU  - Tsung-Huai Chang
PY  - 2013/08
DA  - 2013/08
TI  - A General Theory of Market Competition - M Theory
BT  - Proceedings of the 2013 International Conference on Applied Social Science Research (ICASSR-2013)
PB  - Atlantis Press
SP  - 242
EP  - 252
SN  - 1951-6851
UR  - https://doi.org/10.2991/icassr.2013.63
DO  - 10.2991/icassr.2013.63
ID  - Yeh2013/08
ER  -