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Article
How Do Value Creation and Competition Determine Whether a Firm Appropriates Value?
Management Science (2004)
  • Michael D Ryall, Melbourne Business School
  • Glenn MacDonald
Abstract

How does competition among economic actors determine the value that each is able to appropriate? We provide a formal, general framework within which this question can be posed and answered, and then provide several results. Chief among them is a condition that is both required for, and guarantees, value appropriation. We apply our methodology to (i) assess the familiar notion that uniqueness, inimitability, and competition imply value appropriation, and (ii) determine the value appropriation possibilities for an innovator whose unique discovery is of use to several others who can compete for the right to use it.

Keywords
  • Competition,
  • appropriation,
  • value creation,
  • coalitional game theory,
  • added value
Disciplines
Publication Date
2004
Citation Information
Michael D Ryall and Glenn MacDonald. "How Do Value Creation and Competition Determine Whether a Firm Appropriates Value?" Management Science Vol. 50 Iss. 10 (2004)
Available at: http://works.bepress.com/michael_ryall/3/