A study on the equalization of market share under the perspective of competition——based on the model construction and realistic explanation

As the rational behavior of economic entities, market share is achieved by the way of competition and policy. From the balanced model of market share, this paper studied that the economic entities occupy the market based on the preference for market share, and adjust the preference for market share according to the revenue and goal's changing, which forms the new equalization of market share. Differences on the competitor's reaction will lead to the different equalization of market share. Based on the balance model of market share, the paper made a new explanation on the economic phenomena, such as the shortage of the public product,vicious competition and the state-owned enterprise reform.