Value Capture Theory: A Strategic Management Review

49 Pages Posted: 14 Jan 2015 Last revised: 24 Feb 2016

See all articles by Joshua S. Gans

Joshua S. Gans

University of Toronto - Rotman School of Management; NBER

Michael D. Ryall

University of Toronto - Rotman School of Management

Date Written: February 23, 2016

Abstract

This paper provides the first review of developments in the application of cooperative game theory to issues of interest to strategic management; what we term “value capture theory.” Value capture theory provides a broad approach to formal strategy theory aimed at under- standing persistent heterogeneity in firm performance, nesting competitive market pressures, resource constraints and internal organizational issues. Our review highlights the primary framework for value capture theory, the blindspots that it resolves that otherwise exists in existing theoretical approaches, the principal insights from the theory as well as a myriad of applications that have been developed in recent years using value capture theory.

Keywords: value capture, cooperative game theory, competition

JEL Classification: L13

Suggested Citation

Gans, Joshua S. and Ryall, Michael D., Value Capture Theory: A Strategic Management Review (February 23, 2016). Rotman School of Management Working Paper No. 2549003. Available at SSRN: https://ssrn.com/abstract=2549003 or http://dx.doi.org/10.2139/ssrn.2549003

Joshua S. Gans (Contact Author)

University of Toronto - Rotman School of Management ( email )

Canada

HOME PAGE: http://www.joshuagans.com

NBER ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Michael D. Ryall

University of Toronto - Rotman School of Management ( email )

105 St. George Street
Toronto, Ontario M5S 3E6 M5S1S4
Canada

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