We show that network advantages constitute an important intangible asset that goes unrecognized in the financial statements. For a sample of e-commerce firms, we find that network advantages created by website traffic have substantial explanatory power for stock prices over and above traditional...

Claims have often been made that the quality of online buying experience - web site ease of use, selection of goods offered, quality of customer service, the effectiveness of virtual community building, and site personalization - are crucial to the success of e-commerce firms. We posit that...