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The Manager’s Mind

  • Li Way Lee
Chapter

Abstract

Market share is the most popular measure of corporate dominance. For evidence, look no farther than U.S. and European merger guidelines: they are replete with references to market share. To measure market share, we must be able to measure market first. In this chapter I confront the inconvenient truth that anyone’s measure of a market is subjective. Judges in antitrust cases know this conundrum best. (The name is “relevant market.”) I suggest a mental experiment that illuminates the nature of the problem. This experiment—The Magic Mirror—should lie at the very foundation of any theory of industrial organization.

Keywords

Dominance Market share The Magic Mirror The relevant market 

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Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Li Way Lee
    • 1
  1. 1.Department of EconomicsWayne State UniversityDetroitUSA

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