It has
long been believed that information technology (IT) has the potential to shift
the boundaries surrounding where production takes place. Specifically,
networked IT INVESTMENTS are supposed to reduce costs of monitoring behavior of
internal and external partners, thereby improving incentives and reducing the
risk of opportunistic behavior. Networked IT can also reduce costs of
coordinating economic activity within and between firms.
Tuesday, 9 June 2015
Signaling to Partially Informed Investors in the Newsvendor Model
Companies
face pressure from external investors that leads them to make suboptimal
operations decisions. This pressure arises from three forces: a strong prior
belief that firms are of a "low" type (one with a low quality
INVESTMENT opportunity), an inability for firms to mitigate the information
asymmetry regarding their actual type, and an emphasis on short-term valuation.
Website: http://www.arjonline.org/engineering/american-research-journal-of-computer-science-and-information-technology/
Website: http://www.arjonline.org/engineering/american-research-journal-of-computer-science-and-information-technology/
How IT Shapes Top-Down and Bottom-Up Decision Making
Enterprise
Resource Planning software is a decentralizing technology: It provides information
that enables lower-level managers to make more decisions without consulting
their superiors.
By
the same token, Computer-Assisted Design and Computer-Assisted Manufacturing
software creates a situation in which the plant worker needs less access to
superiors in order to make a decision.
The Determinants of Individual Performance and Collective Value in Private-Collective Software Innovation
Knowledge
creation and reuse are important dual goals of social systems organized to
collectively solve technical problems.
Collective
value relies on the ability of others to understand and comprehend the design
structure of knowledge to enable reuse. Thus deviations from commonly
understood rules of practice, while beneficial to the individual innovator,
impede adoption by others.
The Architecture of Complex Systems: Do Core-periphery Structures Dominate
Core-periphery structures dominate the sample, with 75-80 percent of
systems in the sample possessing such a structure.
It
is significant that a substantial number of systems lack such a structure. This
implies that a considerable amount of managerial discretion exists when
choosing the "best" architecture for a system.
Competing Ad Auctions
Participation
costs exist and matter, affecting bidders' decisions about which ad platforms
to use, and changing the welfare consequences of mergers or joins among
platforms.
By
creating a joined ad platform of larger size than Microsoft or Yahoo alone, the
transaction lets advertisers spread participation costs over a larger purchase,
making it worthwhile for small to midsize advertisers to sign up with the
joined Microsoft-Yahoo platform even though they do not use Microsoft or Yahoo
separately.
Gray Markets and Multinational Transfer Pricing
A
shift to arm's-length transfer pricing erodes domestic consumer surplus by
making the gray MARKET less competitive domestically.
In
the presence of a gray market, the transfer price that maximizes a
multinational's profits may also be the same one that maximizes the social
welfare of the domestic economy that houses it.
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