Skip navigation
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 SizeFormat 
Cabral_CorpReputation_Oct2012.pdfLiving Up to Expectations: Corporate Reputation and Sustainable Competitive Advantage287.05 kBAdobe PDFView/Open


Items in FDA are protected by copyright, with all rights reserved, unless otherwise indicated.