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economic value

See Also

competitive advantage [3] economic rent [4] enterprise value [5]

Definition

Economic value is the difference between the perceived benefits gained by a customer who purchases a firm's products or services and the full economic cost of those products.

A firm has a competitive advantage when it is able to create more economic value than rival firms.

Source:Barney, 2007, pp 17

See enterprise value for application of this concept.

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Links
[1] https://managingresearchlibrary.org/knowledge/blog/lexicon [2] https://managingresearchlibrary.org/about [3] https://managingresearchlibrary.org/glossary/competitive-advantage [4] https://managingresearchlibrary.org/glossary/economic-rent [5] https://managingresearchlibrary.org/glossary/enterprise-value