We consider a retailer investing in two monitoring functions for unobservable demand and salesperson's effort. We show that improving effort monitoring is more effective. Moreover, demand monitoring may be less preferable when it becomes relatively cheaper and balancing these two may be worse...

Minimizing the classical definition of risk should be a counterintuitive venture as the explanatory nature of historical metrics' construction challenges their ability to serve a predictive purpose on a non-stationary process. We uncover an ill conceived bias in these metrics and discover they...