During the last years issues of strategic management accounting have received widespread attention in the accounting literature. Yet the conceptual foundation of most proposals is not clear. This paper presents a theoretical analysis of one of the most prominent approaches of strategic...

Okun's Law postulates an inverse relationship between movements of the unemployment rate and the real gross domestic product (GDP). Empirical estimates for US data indicate that a two to three percent GDP growth rate above the natural or average GDP growth rate causes unemployment to decrease by...

We analyze the economic effects of a developer’s connectedness in the electronic gameindustry. Knowledge spillovers between developers should be of special relevance in this knowledgebasedindustry. We calculate measures for a developer’s connectedness to other developers atmultiple points in...

Entrepreneurship education ranks highly on policy agendas in Europe and the US, butlittle research is available to assess its impacts. In this context it is of primary importanceto understand whether entrepreneurship education raises intentions to be entrepreneurialgenerally or whether it helps...

Recent events involving major insurance companies and insurance brokerage firms highlight substantial incentive problems in commercial and reinsurance markets where intermediation takes place. We show that in markets with informed as well as uninformed consumers and heterogeneous risk profiles...

This paper investigates whether recourse to a consultant always enhances decision making. Advice given by a consultant changes the manager’s belief about his own decision-making ability. This change in belief alters the manager’s incentives to make a decision. Taking into account this...

We develop a model of real investment and cash holdings in which firms face uncertaintyregarding their ability to raise funds in the capital markets and have to search for investorswhen raising outside capital. We provide an explicit characterization of the optimal investment,cash management,...

This paper examines the implications of “prominence” in search markets. We modelprominence by supposing that the prominent firm will be sampled first by all consumers.If there are no systematic quality differences among firms, we find that the prominentfirm will charge a lower price than its...

This paper develops a sequential learning estimator of production functions and productivitydynamics for unbalanced establishment panels. Extending an idea from the literatureon dynamic industry models, establishments are uncertain about their own idiosyncraticproductivities and update...

We propose a framework for analyzing transformations of demand. Such transformations frequently stem from changes in the dispersion of consumers` valuations, which lead to rotations of the demand curve. In a wide variety of settings, profits are a U-shaped function of dispersion. A high level of...