Radhakrishnan, Suresh; Balachandran, Kashi R. - In: Management Science 41 (1995) 4, pp. 646-652
This paper examines the role of cost application in the presence of delay and agency costs. Two risk neutral division managers share a common (production) facility and decide on (a) the demand (usage) rates, and (b) productive action. Each division manager causes costly delays at the common...