Title: | Living Up to Expectations: Corporate Reputation and Sustainable Competitive Advantage |
Authors: | Cabral, Luis |
Issue Date: | 6-Nov-2012 |
Abstract: | I develop a theory of corporate reputation as a source of sustainable competitive advantage. I show how a relatively simple and reasonable assumption regarding the dynamics of corporate reputation leads to a self-reinforcing process whereby cross-firm differences in corporate reputation (and performance) are significant and relatively permanent. Numerical simulations suggest that persistence in cross-firm differences is largely due to endogenous investment incentives: firms with higher corporate reputation invest more in corporate reputation. I provide a series of examples consistent with the model's prediction. |
URI: | http://hdl.handle.net/2451/31643 |
Rights: | Copyright Luis Cabral, 2012. |
Appears in Collections: | Economics Working Papers |
Files in This Item:
File | Description | Size | Format | |
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Cabral_CorpReputation_Oct2012.pdf | Living Up to Expectations: Corporate Reputation and Sustainable Competitive Advantage | 287.05 kB | Adobe PDF | View/Open |
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