This paper elaborates a framework that integrates insights from the entrepreneurship and strategy literatures on competition between an incumbent firm and an entrepreneurial entrant. The framework captures the competitive consequences of a range of possible incumbent responses to entrepreneurial...

Prior work in experimentation assumes that the choice about when and how to experiment on a business idea is a trade-off between the cost of an experiment and the value of the information it reveals. This paper captures the possibility that experimentation can also change the value of an idea -...

Prior work in business experimentation concludes that involving other stakeholders besides the entrepreneur mitigates the challenge of biased experimental decision-making. However, this work also maintains a key simplifying assumption—that the actors involved have a common goal to maximize...

[enter Abstract Body]Previous research in management accounting and economics has noted the potential for complementarities between the firm’s performance measurement system and its other organizational design choices. We add to this literature by studying how the informativeness and incentive...

At the heart of decentralization lies the notion that tasks are delegated by owners to managers who possess superior local information. The extent of this information asymmetry is often an endogenous construct, as it is influenced by the owner’s choice of internal accounting systems and the...

Firms rarely cut compensation, so little is known about the after-effects when compensation reductions do occur. We use commission reductions at a sales firm to estimate how work effort and turnover change. In response to an 18% decline in sales commissions, corresponding to a 7% decline in...

We examine the effects of biased (conservative or liberal) reporting on product market competition. Cournot duopolists observe either firm-specific or industry-wide shocks and provide noisy reports subject to an exogenous mandated bias attributed to public policy. Given neutral prior beliefs,...