Market share. Consumers can choose between three long- distance telephone services: GTT, NCJ, and Dash. Aggressive marketing by all three companies results in a continual shift of customers among the three services. Each year, GTT loses 5% of its customers to NCJ and 20% to Dash; NCJ loses 15% of its customers to GTT and 10% to Dash; and Dash loses 5% of its customers to GTT and 10% to NCJ. Assuming that these percentages remain valid over a long period of time, what is each company's expected market share in the long run?

Market share. Consumers can choose between three long- distance telephone services: GTT, NCJ, and Dash. Aggressive marketing by all three companies results in a continual shift of customers among the three services. Each year, GTT loses 5% of its customers to NCJ and 20% to Dash; NCJ loses 15% of its customers to GTT and 10% to Dash; and Dash loses 5% of its customers to GTT and 10% to NCJ. Assuming that these percentages remain valid over a long period of time, what is each company's expected market share in the long run?

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter17: Making Decisions With Uncertainty

Section: Chapter Questions

Problem 6MC

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