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Corporate reputation and social media: a game theory approach

Author

Listed:
  • Thierry Warin
  • Nathalie De Marcellis-Warin
  • William Sanger
  • Bertrand Nembot
  • Venus Hosseinali Mirza

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 publicise and also protect. Social media are a formidable tool to publicise a firm's brand and improve its reputation. However, it can also be deadly. Indeed, 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.

Suggested Citation

  • Thierry Warin & Nathalie De Marcellis-Warin & William Sanger & Bertrand Nembot & Venus Hosseinali Mirza, 2015. "Corporate reputation and social media: a game theory approach," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 9(1), pages 1-22.
  • Handle: RePEc:ids:ijecbr:v:9:y:2015:i:1:p:1-22
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    References listed on IDEAS

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    1. Flávio Rodrigues & Victoria Souza & João Leitão, 2011. "Strategic coopetition of global brands: a game theory approach to 'Nike + iPod Sport Kit' co-branding," International Journal of Entrepreneurial Venturing, Inderscience Enterprises Ltd, vol. 3(4), pages 435-455.
    2. Luis M.B. Cabral, 2000. "Stretching Firm and Brand Reputation," RAND Journal of Economics, The RAND Corporation, vol. 31(4), pages 658-673, Winter.
    3. Jay Pil Choi & Doh-Shin Jeon, 2007. "A leverage theory of reputation building with co-branding: Complementarity in reputation building," Economics Working Papers 1019, Department of Economics and Business, Universitat Pompeu Fabra.
    4. Fudenberg, Drew & Kreps, David M., 1986. "Reputation and Multiple Opponents I: Identical Entrants," Department of Economics, Working Paper Series qt2cs887vq, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    5. Nathalie de Marcellis-Warin & Serban Teodoresco, 2012. "Corporate Reputation: Is Your Most Strategic Asset at Risk?," CIRANO Burgundy Reports 2012rb-01, CIRANO.
    6. Fudenberg, Drew & Kreps, David M., 1986. "Reputation and Multiple Opponents I: Identical Entrants," Department of Economics, Working Paper Series qt2cs887vq, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
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    Cited by:

    1. Araujo, Luiz Nelson, 2016. "Dissemination of Information by the Federal Reserve System: An Overview and Benchmark," MPRA Paper 73185, University Library of Munich, Germany.

    More about this item

    Keywords

    social media; social economics; brand tribalism; corporate reputation.;

    JEL classification:

    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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