In this article, I study the interaction between cost accounting systems and pricing decisions in a setting where a monopolist sells a base product and related support services to customers whose preference for support services is known only to them. I consider two pricing...

In this paper, we model a manufacturer that contracts with two retailers, who then choose retail prices and stocking quantities endogenously in a Bayesian Nash equilibrium. If the manufacturer designs a contract that is accepted by both retailers, it sets the wholesale price as a compromise...

Two of the most pervasive cost accounting systems for coordinating activities and facilitating decisions within firms are transfer pricing and product costing. These systems allow decentralized decision making that can take advantage of the local knowledge of managers. The choice of transfer...