Corporate Reputation and Social Media: A Game Theory Approach

19 Pages Posted: 17 Sep 2013  

Thierry Warin

HEC Montreal; CIRANO

Nathalie de Marcellis-Warin

Center for Interuniversity Research and Analysis on Organization (CIRANO)

William Sanger

Center for Interuniversity Research and Analysis on Organization (CIRANO)

Bertrand Nembot

Center for Interuniversity Research and Analysis on Organization (CIRANO)

Venus Hossein Mirza

Center for Interuniversity Research and Analysis on Organization (CIRANO)

Date Written: July 16, 2013

Abstract

Corporate reputation is more and more the most valuable asset for a firm. In this day and age, corporate reputation, although an intangible asset, is and will grow as the most essential asset to publicize and also protect. Social media are a formidable tool to publicize a firm's brand and improve its reputation. However, it can also be deadly. Associated with social media comes the "buzz", i.e. the means to spread at an unprecedented speed and scale any information, being true or false. In this paper, our aim is to propose a Game Theory approach with both a finite and an infinite horizon. The model presented here helps us evaluate the impact of social media on a firm's reputation. It also highlights the important parameters of a firm's reputation in this new digital era.

Keywords: social media, social economics, brand tribalism, corporate reputation

JEL Classification: L14, M14, M21, M31

Suggested Citation

Warin, Thierry and de Marcellis-Warin, Nathalie and Sanger, William and Nembot, Bertrand and Hossein Mirza, Venus, Corporate Reputation and Social Media: A Game Theory Approach (July 16, 2013). CIRANO - Scientific Publications 2013s-18. Available at SSRN: https://ssrn.com/abstract=2326585 or http://dx.doi.org/10.2139/ssrn.2326585

Thierry Warin (Contact Author)

HEC Montreal ( email )

3000, Chemin de la Côte-Sainte-Catherine
Montreal, Quebec H2X 2L3
Canada

CIRANO ( email )

2020 rue University, 25th floor
Montreal H3C 3J7, Quebec
Canada

HOME PAGE: http://works.bepress.com/warin/

Nathalie De Marcellis-Warin

Center for Interuniversity Research and Analysis on Organization (CIRANO) ( email )

2020 rue University, 25th floor
Montreal H3C 3J7, Quebec
Canada

William Sanger

Center for Interuniversity Research and Analysis on Organization (CIRANO) ( email )

2020 rue University, 25th floor
Montreal H3C 3J7, Quebec
Canada

Bertrand Nembot

Center for Interuniversity Research and Analysis on Organization (CIRANO) ( email )

2020 rue University, 25th floor
Montreal H3C 3J7, Quebec
Canada

Venus Hossein Mirza

Center for Interuniversity Research and Analysis on Organization (CIRANO) ( email )

2020 rue University, 25th floor
Montreal H3C 3J7, Quebec
Canada

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