Excerpt
Integrated Strategy: Residual Market Imperfections as the Foundation of Sustainable Competitive Advantage. Felix Oberholzer-Gee, Dennis Yao, February 1, 2017, Paper, "Market imperfections are central to understanding the mechanisms that permit firms to capture value. Through competition leading firms often reduce these imperfections, making markets more efficient. The remaining imperfections become a primary impetus for government intervention. Hence, understanding residual market imperfections – those imperfections that persist after market competition and regulation are accounted for – must undergird any assessment of the long-term attractiveness of firm strategies. Our proposed framework provides an integrated view of competition and government intervention, two of the principal forces that influence variation in firm profitability."