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The Value of Loyal Customers

Author

Listed:
  • Leena Rudanko

Abstract

Is there a rational reason that stock prices in some industries greatly exceed book values? The answer may lie in the idea that customers are capital.

Suggested Citation

  • Leena Rudanko, 2017. "The Value of Loyal Customers," Economic Insights, Federal Reserve Bank of Philadelphia, vol. 2(2), pages 11-17, April.
    • Handle: RePEc:fip:fedpei:00017
    as

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    File URL: https://www.philadelphiafed.org/-/media/frbp/assets/economy/articles/economic-insights/2017/q2/eiq22017_loyalcustomers.pdf
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    References listed on IDEAS

    as
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    6. Costas Arkolakis, 2010. "Market Penetration Costs and the New Consumers Margin in International Trade," Journal of Political Economy, University of Chicago Press, vol. 118(6), pages 1151-1199.
    7. Emin M. Dinlersoz & Mehmet Yorukoglu, 2012. "Information and Industry Dynamics," American Economic Review, American Economic Association, vol. 102(2), pages 884-913, April.
    8. Kleshchelski, Isaac & Vincent, Nicolas, 2009. "Market share and price rigidity," Journal of Monetary Economics, Elsevier, vol. 56(3), pages 344-352, April.
    9. Frederico Belo & Xiaoji Lin & Maria Ana Vitorino, 2014. "Brand Capital and Firm Value," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 17(1), pages 150-169, January.
    10. Fran?ois Gourio & Leena Rudanko, 2014. "Can Intangible Capital Explain Cyclical Movements in the Labor Wedge?," American Economic Review, American Economic Association, vol. 104(5), pages 183-188, May.
    11. Leonard I. Nakamura, 1999. "Intangibles: what put the new in the new economy?," Business Review, Federal Reserve Bank of Philadelphia, issue Jul, pages 3-16.
    12. François Gourio & Leena Rudanko, 2014. "Can Intangible Capital Explain Cyclical Movements in the Labor Wedge?," Working Paper Series WP-2014-2, Federal Reserve Bank of Chicago.
    13. Leena Rudanko, 2017. "Pricing in a Frictional Product Market," 2017 Meeting Papers 1281, Society for Economic Dynamics.
    14. Robert E. Hall, 2001. "Struggling to Understand the Stock Market," American Economic Review, American Economic Association, vol. 91(2), pages 1-11, May.
    15. Emin M. Dinlersoz & Mehmet Yorukoglu, 2012. "Information and Industry Dynamics," American Economic Review, American Economic Association, vol. 102(2), pages 884-913, April.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Winston Wei Dou & Yan Ji & David Reibstein & Wei Wu, 2021. "Inalienable Customer Capital, Corporate Liquidity, and Stock Returns," Journal of Finance, American Finance Association, vol. 76(1), pages 211-265, February.

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