Equilibrium Characteristics of Multinomial Logit Market Share Models
研究发现，在多项Logit市场份额模型中，市场份额低于50%的企业利润最大化策略是无限增加广告等正向营销变量，导致模型无法合理描述企业行为，不适合用于竞争均衡分析。
Previous research suggests that a multinomial logit model of market share can be used in optimization or equilibrium analyses of marketing decision making. However, there are significant problems with the solutions obtained from such an analysis. The authors show that for any firm with less than a 50% market share, the profit maximizing solution is to increase advertising as much as possible. The same holds true for any other positively signed marketing mix variable. The exponential property of the MNL model precludes reasonable descriptions of firm behavior in this case. Thus, the MNL market share model is inappropriate for equilibrium analysis of marketing competition.