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Publications
  • 2013
  • Chapter
  • Oxford Handbook of Managerial Economics

Market Imperfections and Sustainable Competitive Advantage

By: Felix Oberholzer-Gee and Dennis Yao
  • Format:Print
  • | Pages:16
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Abstract

This chapter reviews the main theories in strategic management that seek to explain persistent differences in profitability across companies. We argue that these differences are ultimately explained by market imperfections. Studying differences in financial performance through the lens of market imperfections provides several advantages. The framework allows executives to better understand the circumstances under which common strategic advice will in fact create a sustainable competitive advantage for their company. From a scholarly perspective, market imperfections help link seemingly disparate theories of strategic management to industrial organization and economics.

Keywords

Strategic Management; Market Imperfections; Five Forces Framework; Competitive Advantage; Profit

Citation

Oberholzer-Gee, Felix, and Dennis Yao. "Market Imperfections and Sustainable Competitive Advantage." Chap. 12 in Oxford Handbook of Managerial Economics, by Christopher R. Thomas and William F. Shughart II, 262–277. Oxford University Press, 2013.
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About The Authors

Felix Oberholzer-Gee

Strategy
→More Publications

Dennis A. Yao

Strategy
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More from the Authors

    • September 2024 (Revised December 2024)
    • Faculty Research

    Discovery Bank

    By: Felix Oberholzer-Gee, Pippa Tubman Armerding and Namrata Arora
    • August 2024
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    Coca Cola İçecek—Managing a Sudden Turbulence

    By: Felix Oberholzer-Gee, Namrata Arora and Gizem Cihan Dincsoy
    • June 2024
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    Rationalizing Outcomes: Interdependent Learning in Competitive Markets

    By: Anoop R. Menon and Dennis Yao
More from the Authors
  • Discovery Bank By: Felix Oberholzer-Gee, Pippa Tubman Armerding and Namrata Arora
  • Coca Cola İçecek—Managing a Sudden Turbulence By: Felix Oberholzer-Gee, Namrata Arora and Gizem Cihan Dincsoy
  • Rationalizing Outcomes: Interdependent Learning in Competitive Markets By: Anoop R. Menon and Dennis Yao
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