search query: @indexterm CORPORATE STRATEGY / total: 2034
reference: 122 / 2034
| Author: | Simon, J. L. |
| Title: | Firm size and market behavior: A theory of their relationship |
| Journal: | Journal of Economic Behavior and Organization
1997 : MAY, Vol. 33:1, p. 107-120 |
| Index terms: | COMPANIES BY SIZE MARKET STRUCTURE CORPORATE STRATEGY |
| Language: | eng |
| Abstract: | This paper explores a connection between firm size and business strategy, a link between market structure and market behavior. The paper offers proof that the larger a firm's "custom" (committed customers), the greater the propensity to choose additional advertising in preference to a price cut. The key idea is that the larger the custom, ceteris paribus, the larger the number of "attached" customers who will pay more (less) if price is increased (decreased) , and whose revenue could otherwise be counted at the old price. In contrast, advertising does not affect revenue from the "attached" customers. |
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