Business Intelligence

Role Of Resource Gap And Value Appropriation: Effect Of Reputation Gap On Price Premium In Online Auctions

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Executive Summary

In this study the author draw on the resource-based view of the firm and on value-added methodology to examine when firms appropriate value from their superior resources. The author argue for the need to take into account the role of the resource gap between competitors rather than the absolute resource stock of the focal firm when examining the resource-performance relationship. In particular, the author investigates whether the ability of a reputable seller to command a price premium is influenced by the reputation gap (i.e., the reputation differences between the focal seller and its closest competitor standardized by the reputation stock of both sellers).

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