This paper analyzes the impact of both non-systematically inaccurate and systematically inaccurate predictions on the coordination of distributed investment decisions. The predictions of concern pertain to the expected cash outlay necessary to launch and operate an investment project, to the...

This paper introduces a model of a stylized organization that is comprised of several departments that autonomously allocate tasks. To do so, the departments either take short-sighted decisions that immediately maximize their utility or take long-sighted decisions that aim at minimizing the...

The hidden-action model provides an optimal sharing rule for situations in which a principal assigns a task to an agent who makes an effort to carry out the task assigned to him. However, the principal can only observe the task outcome but not the agent's actual action. The hidden-action model...

Agent-based computational economics (ACE) - while adopted comparably widely in other domains of managerial science - is a rather novel paradigm for management accounting research (MAR). This paper provides an overview of opportunities and difficulties that ACE may have for research in management...

Models involving human decision-makers often include idealized assumptions, such as rationality, perfect foresight, and access to relevant information. These assumptions usually assure the models' internal validity but, at the same time, might limit the models' power to explain empirical...