Economic Moat(redirected from Economic Moats)
Informal; a competitive advantage over other companies in the same industry. This comparative advantage may be cost-related; that is, one company may be able to produce a good or service more cheaply and can therefore sell it for less. However, the economic moat may also be intangible; one company's name recognition may encourage more consumers to buy its products. A "wide" or "deep" economic moat indicates a company with an economic moat difficult to overcome. See also: Comparative Advantage, Absolute Advantage.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved