This paper studies the influence of agency conflicts on the irreversibility effect. Using a dynamic variant of the static Baron and Myerson (Econometrica 50(4):911–930, <CitationRef CitationID="CR7">1982</CitationRef>) adverse selection model, we characterize under which circumstances the irreversibility effect arises in the presence...</citationref>

The prevalence of intermediaries (middlemen) in supply chains is often seen as a dying remnant of less efficient times. Despite predictions that supply chains will rapidly “cut out the middleman” as technological advances have eased logistics, middlemen have continued to thrive. In this...

We investigate how the organizational structure of a firm influences the decision making of its top management. Different organizational structures lead information to be processed in different ways by the individual decision makers, potentially creating an informational cascade within the...

Earlier literature has pointed to the effectiveness of residual income-type measures based on particular accrual accounting rules such as the relative benefit allocation rule. These performance metrics have been shown to generate desirable managerial incentives when investment decisions are...

In vertical relationships, manufacturers commonly rely on retailers to sell their goods. In this note, we analyze a manufacturer-retailer relationship in which a manufacturer delegates the sale of his product to a retailer who gets sequentially private information about the retail value of the...