We analyze how limited contractibility and the informational quality of audits affect inventory levels and the optimality of individual versus team-based production. We use a two-period agency model in which contractibility is limited and agents meet a fixed delivery quota each period. A costly...

The academic and practitioner literature justifies firms' use of product costs in product pricing and capacity planning decisions as heuristics to address an otherwise intractable problem. However, product costs are the output of a cost reporting system, which itself is the outcome of heuristic...

Intuition tends to guide model formulation, as it is generally impossible to consider all dimensions of a problem. The ability to surprise, heightening the focus on paradox and the contradiction of reality, is therefore more useful than a literal representation of reality. While numerical...