The authors report an empirical regularity in the market shares of brands. They propose a theoretical explanation for this observed regularity and identify additional consequences of their explanation. Empirical testing of these consequences supports the proposed explanation. The empirical...

This paper: (i) reports an empirical regularity in the market shares of brands; (ii) presents a theoretical framework for understanding the observed regularity; (iii) adduces additional empirical consequences of the framework, which are some counterintuitive relationships among market shares of...