It is well established that accounting based incentive schemes can induce managers to adapt their behavior to manipulate accounting metrics even if such behavior is not in the best interest of the firm. Using a parsimonious model, this paper establishes how common accounting based bonus schemes...

We examine how different characteristics of product demand and market impact the relative sales volume in the forward and spot markets for a commodity whose aggregate demand is uncertain. In a setting where either the forward contracts are binding quantity commitments between buyers and...

Lariviere and Porteus (2001) introduce the concept of generalized failure rate of a continuous random variable and demonstrate its importance. If the valuation distribution of a product has an increasing generalized failure rate (that is, the distribution is IGFR), then the associated revenue...