Economics of Accounting: Information in Markets examines the fundamentals of a variety of economic analyses of the decision-facilitating and decision-influencing roles of information that are pertinent to the study of the economic impact of accounting. While much of information economic analysis...

Traditional standard cost variance analysis procedures are examined as motivational devices in a principal-agent model. The reexpressing of a cost realization into components (such as individual factor price and quantity variances) is shown to be useful if an incentive problem exists and if the...

The typical statistical cost control model determines when a cost deviation is significant, but does not determine the optimum search procedure for restoring the process to a state of control. This search procedure is important because any given cost deviation may be the result of a number of...

Network scheduling activities are usually addressed in a two-stage process of static schedule determination and subsequent control monitoring. A more complete view combines these two subsets of decisions with information acquisition decisions into a dynamic optimization framework. Such a...

We analyze the optimal behavior of an organization when its employees can manipulate the organization's accounting system to their private advantage. We find that the organization may benefit by helping its employees manipulate the system. This help can reduce the employees' private returns from...