Chapter 1 – Experience Effect and Market Share (2/10)

Chapter 1 – Experience effect and market share (2/10)

The value of market shares – The case of a weak market growth

When these first results were published everyone said “OK… but what about in normal products?”
The law discovered thanks to microprocessors actually had a general value.

 20%

1.

In general, when growth is strong, how do prices behave over the long term?

Prices go up

Prices drop

Prices are stable

2.

In general, when growth is weak, how do prices behave over the long term?

Prices go up

Prices drop

Prices are stable

3.

Can we say that only high-tech jobs see prices drop?

Yes

No

4.

Companies A, B and C have respective market shares of 40%, 20% and 10%. The profession has an 80% slope. A report shows margins of 20% for A, 10% for B and -25% for C.
One of these three margins is unlikely. Which one?

20 %

10 %

-25 %

5.

The air transport market is growing at 7% per year and has a 75% experience slope.
If a Paris-Shanghai ticket is currently worth 1000 euros, what will it be worth in ten years?

1500

600

750

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