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dc.contributor.authorCardinaels, Eddy
dc.contributor.authorRoodhooft, Filip
dc.contributor.authorWarlop, Luk
dc.contributor.authorVan Herck, Gustaaf
dc.date.accessioned2017-12-02T14:16:56Z
dc.date.available2017-12-02T14:16:56Z
dc.date.issued2004
dc.identifier.urihttp://hdl.handle.net/20.500.12127/1297
dc.description.abstractThis study experimentally investigates the value of cost report accuracy in an interactive pricing context. Market agents received feedback about their own profits via either a volume-based costing or a more accurate activity-based costing report. They also received a typical market report containing the performance of their rivals. While prior work suggested that market discipline and learning from salient competitors can overcome performance decrements due to inaccurate costing, our results imply that the corrective nature of market feedback depends on the decision maker's role in the competitive play. Compared to other participants, decision makers endowed with the role of a 'reputational' market leader are less effective in screening available market feedback because they predominantly fixate on their own cost data. Even when receiving biased volume-based costing, reputational leaders ignore valuable market signals of opponents having access to more accurate cost data. Consequently other market players can take advantage of them.
dc.language.isoen
dc.publisherVlerick Business School
dc.subjectManagement Accounting & Control
dc.titleMarket feedback, cost system choice and competitve pricing: the advantage of not being a leader
refterms.dateFOA2019-10-14T12:44:42Z
dc.source.issue6
dc.source.numberofpages33
vlerick.knowledgedomainAccounting & Finance
vlerick.supervisor
vlerick.typecommWorking paper
vlerick.vlerickdepartmentA&F
dc.relation.urlhttp://public.vlerick.com/Publications/cd65a6b1-69a9-e011-8a89-005056a635ed.pdf
dc.identifier.vperid140434
dc.identifier.vperid51506
dc.identifier.vperid55967
dc.identifier.vperid51527
dc.identifier.vpubid1355


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