Resource Competition, Amplification, and the Evolution of Performance Differences

Working Papers

How do ex ante similar firms develop heterogeneous resource positions that lead to persistent performance differences, even among direct competitors? The model in this paper shows that resource competition drives amplification of small differences in resource positions into large performance differences.Read More

Estimating Value Creation from Revealed Preferences: Application to Value-Based Strategy

Published Research

We develop and apply a new set of empirical tools consistent with the tenets of value-based business strategies, leveraging the principle that “no good deal comes undone” and the methods of revealed preferences to empirically estimate drivers of value creation.Read More

Agency Selling or Reselling? Channel Structures in Electronic Retailing

Published Research

In recent years, online retailers (also called e-tailers) have started allowing manufacturers direct access to their customers while charging a fee for providing this access, a format commonly referred to as agency selling. In this paper, we use a stylized theoretical model to answer a key question that e-tailers are facing: When should they use an agency selling format instead of using the more conventional reselling format?Read More

Capacity Investment Timing by Start-ups and Established Firms in New Markets

Published Research

We analyze the competitive capacity investment timing decisions of both established firms and start-ups entering new markets which are characterized by a high degree of demand uncertainty. Firms may invest in capacity early (when the market is highly uncertain) or late (when market uncertainty has been resolved), possibly at different costs.Read More