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  • Research Summary

The Role of the Internet in Enhancing Service and Reducing Cost

Is delivering service (both internal and external) facilitated by the Internet a zero sum game in which costs associated with delivering superior service must always be passed on to customers in the form of higher prices? Does the quantity and type of service... View Details

  • May 16, 2016
  • Article

Food Safety Economics: The Cost of a Sick Customer

By: Dina Gerdeman and John A. Quelch
Chipotle Mexican Grill’s ongoing struggle to win customers back months after a contaminated food crisis highlights the challenges companies face with keeping food safe.

Chipotle has seen its shares tumble and recently reported its first-ever quarterly loss... View Details
Keywords: Food Safety; Organic Food; Supply Chain Management; Globalization Of Food Business; Mérieux NutriSciences: Marketing Food Safety Testing; Food Safety Modernization Act 2011; Plant-Based Agribusiness; Transition; Economic Systems; Food; Health; Supply and Industry; Logistics; Practice; Problems and Challenges; Quality; Safety; Business Strategy; Corporate Strategy; Customization and Personalization; Agriculture and Agribusiness Industry; Consumer Products Industry; Food and Beverage Industry; Insurance Industry; Public Administration Industry; Public Relations Industry; Retail Industry; Service Industry; Mexico; North America; United States; Canada
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Gerdeman, Dina, and John A. Quelch. "Food Safety Economics: The Cost of a Sick Customer." Harvard Business School Working Knowledge (May 16, 2016).
  • 2001
  • Working Paper

Virtuous Cycles: Improving Service and Lowering Costs in E-Commerce

Citation
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Hallowell, Roger. "Virtuous Cycles: Improving Service and Lowering Costs in E-Commerce." Harvard Business School Working Paper, No. 02-019, September 2001.
  • 1992
  • Book

Implementing Activity-Based Cost Management: Moving from Analysis to Action

By: Robert S. Kaplan, Robin Cooper, Larry Maisel, Eileen Morrissey and Ronald M. Oehm
Keywords: Activity Based Costing and Management
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Kaplan, Robert S., Robin Cooper, Larry Maisel, Eileen Morrissey, and Ronald M. Oehm. Implementing Activity-Based Cost Management: Moving from Analysis to Action. Montvale, NJ: Institute of Management Accountants, 1992. (

Winner of Notable Contribution to Management Accounting Literature Award presented by American Accounting Association

.)
  • 01 Aug 2016
  • Working Paper Summaries

The Costs of Sovereign Default: Evidence from Argentina

Keywords: by Jesse Schreger and Benjamin Hebert
  • Article

Cut Payroll Costs with Transparency, Fairness, and Compassion

By: Boris Groysberg and Sarah Abbott
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Groysberg, Boris, and Sarah Abbott. "Cut Payroll Costs with Transparency, Fairness, and Compassion." Harvard Business School Working Knowledge (December 3, 2020).
  • 2021
  • Working Paper

Investment as the Opportunity Cost of Dividend Signaling

By: Zach Kaplan and Gerardo Pérez Cavazos
We provide evidence that firms with weak investment opportunities (those whose current earnings justify a greater valuation than firms with strong investment opportunities) signal their permanent earnings level through their dividends. In the cross-section, we show... View Details
Keywords: Dividend Signaling; Investment; Opportunities
Citation
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Kaplan, Zach, and Gerardo Pérez Cavazos. "Investment as the Opportunity Cost of Dividend Signaling." Working Paper, May 2021. (Forthcoming in The Accounting Review.)
  • March 2020
  • Article

Knowing When to Ask: The Cost of Leaning-in

By: Christine L. Exley, Muriel Niederle and Lise Vesterlund
Women's reluctance to negotiate is often used to explain the gender wage gap, popularizing the push for women to “lean-in" and negotiate more. Examining an environment where women achieve positive profits when they choose to negotiate, we find that increased... View Details
Keywords: Negotiations; Leaning-in; Selection; Negotiation Participants; Negotiation Style; Gender
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Exley, Christine L., Muriel Niederle, and Lise Vesterlund. "Knowing When to Ask: The Cost of Leaning-in." Journal of Political Economy 128, no. 3 (March 2020): 816–854.
  • Article

Capital Commitments and the High Cost of Money

By: Samuel Hayes
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Hayes, Samuel. "Capital Commitments and the High Cost of Money." Harvard Business Review 55, no. 3 (May–June 1977): 155–161.
  • 2007
  • Chapter

Coordination Costs and Standard Setting: Lessons from 56K

By: Shane Greenstein and Marc Rysman
Citation
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Greenstein, Shane, and Marc Rysman. "Coordination Costs and Standard Setting: Lessons from 56K." Chap. 4 in Standards and Public Policy, edited by Shane Greenstein and Victor Stango, 123–159. Cambridge University Press, 2007.
  • September 1994
  • Article

Implementing New Knowledge: The Case of Activity-Based Costing

By: Chris Argyris and Robert S. Kaplan
Keywords: Knowledge; Accounting
Citation
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Argyris, Chris, and Robert S. Kaplan. "Implementing New Knowledge: The Case of Activity-Based Costing." Accounting Horizons 8, no. 3 (September 1994): 83–105.
  • Article

Consumer-Driven Health Care: Taming the Health Care Cost Monster

By: Regina E. Herzlinger
Keywords: Health Care and Treatment; Customers; Cost; Health Industry
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Herzlinger, Regina E. "Consumer-Driven Health Care: Taming the Health Care Cost Monster." Journal of Financial Service Professionals 58, no. 2 (March 2004): 44–48.
  • 2015
  • Working Paper

Measurement Errors of Expected-Return Proxies and the Implied Cost of Capital

By: Charles C.Y. Wang
Despite their popularity as proxies of expected returns, the implied cost of capital's (ICC) measurement error properties are relatively unknown. Through an in-depth analysis of a popular implementation of ICCs by Gebhardt, Lee, and Swaminathan (2001) (GLS), I show... View Details
Keywords: Measurement and Metrics; Cost of Capital; Investment Return
Citation
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Wang, Charles C.Y. "Measurement Errors of Expected-Return Proxies and the Implied Cost of Capital." Harvard Business School Working Paper, No. 13-098, May 2013. (Revised February 2015.)
  • Article

Product Positioning in a Two-Dimensional Vertical Differentiation Model: The Role of Quality Costs

By: Dominique Lauga and Elie Ofek
We study a duopoly model where consumers are heterogeneous with respect to their willingness to pay for two product characteristics and marginal costs are increasing with the quality level chosen on each attribute. We show that while firms seek to manage competition... View Details
Keywords: Duopoly and Oligopoly; Customers; Quality; Product Positioning; Competition; Management; Cost; Product
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Lauga, Dominique, and Elie Ofek. "Product Positioning in a Two-Dimensional Vertical Differentiation Model: The Role of Quality Costs." Marketing Science 30, no. 5 (September–October 2011): 903–923.
  • 16 May 2016
  • HBS Case

Food Safety Economics: The Cost of a Sick Customer

poultry manufacturer that sold processed chicken parts to both retailers and fast food restaurants—was debating whether to outsource food safety tests to Mérieux NutriSciences at a cost of $1 million for 12 months of testing. As it turned... View Details
Keywords: by Dina Gerdeman; Food & Beverage
  • April 2014
  • Article

The Cost of High-Powered Incentives: Employee Gaming in Enterprise Software Sales

By: Ian Larkin
This paper investigates the pricing distortions that arise from the use of a common non-linear incentive scheme at a leading enterprise software vendor. The empirical results demonstrate that salespeople are adept at gaming the timing of deal closure to take advantage... View Details
Keywords: Incentives; Motivation; Compensation; Gaming; Sales Force Management; Motivation and Incentives; Salesforce Management; Software; Compensation and Benefits; Information Technology Industry
Citation
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Larkin, Ian. "The Cost of High-Powered Incentives: Employee Gaming in Enterprise Software Sales." Journal of Labor Economics 32, no. 2 (April 2014): 199–227.
  • June 2009 (Revised May 2010)
  • Background Note

A Note on Cost Reduction in Financially Troubled Organizations

By: Paul W. Marshall
This note discusses methods for reducing costs, particularly labor costs, in a financially distressed organization. View Details
Keywords: Financial Crisis; Entrepreneurship; Cost Management; Financial Condition; Labor; Crisis Management
Citation
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Marshall, Paul W. "A Note on Cost Reduction in Financially Troubled Organizations." Harvard Business School Background Note 809-161, June 2009. (Revised May 2010.)
  • 2016
  • Working Paper

Paying (for) Attention: The Impact of Information Processing Costs on Bayesian Inference

By: Scott Duke Kominers, Xiaosheng Mu and Alexander Peysakhovich
Human information processing is often modeled as costless Bayesian inference. However, research in psychology shows that attention is a computationally costly and potentially limited resource. We study a Bayesian individual for whom computing posterior beliefs is... View Details
Keywords: Behavior; Cognition and Thinking; Economics
Citation
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Kominers, Scott Duke, Xiaosheng Mu, and Alexander Peysakhovich. "Paying (for) Attention: The Impact of Information Processing Costs on Bayesian Inference." Working Paper, February 2016.
  • 1994
  • Chapter

The Agency Costs of Free Cash Flow: Corporate Finance and Takeovers

By: Michael Jensen
Keywords: Cost; Cash Flow; Acquisition; Corporate Finance
Citation
SSRN
Related
Jensen, Michael. "The Agency Costs of Free Cash Flow: Corporate Finance and Takeovers." In Management Buy-Outs, edited by Mike Wright and Keith Bradley, series editor, pp. 3–9. International Library of Management. England and Vermont: Dartmouth Publishing, 1994. (Also in AER, Vol. 76, No. 2 (May, 1986); abridged in Simon Management Rev, (Win, 1986); & forthcoming in Jensen, Management Revolution: The Legacy of the Market for Corporate Control, Harvard University Press.)
  • February 1998
  • Teaching Note

Marriott Corporation: The Cost of Capital (Abridged), Teaching Note

By: Richard S. Ruback
Teaching Note for (9-289-047). View Details
Citation
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Ruback, Richard S. "Marriott Corporation: The Cost of Capital (Abridged), Teaching Note." Harvard Business School Teaching Note 298-081, February 1998.
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