User delay costs and internal pricing for a service facility

Article Abstract:

Organizations with internal service departments and user departments experience a variety of management and control problems when measuring profitability in order to control supply and demand. The internal price system of Hirshleifer (1964) is the classic approach for internal pricing, providing valuable data for deciding the scale and allocation of resources. A model predicated upon a nonlinear delay cost structure in which a tradeoff between capacity cost and delay costs is incorporated can be used for making optimal capacity and pricing decisions for service facilities for which users' delay costs are a significant variable. Research results reveal that service facilities should be analyzed as 'deficit center': the model provides a framework for determining the optimal magnitude of the deficit.

Research, Pricing, Organizational research, Hirshleifer, J.

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Information technology and time-based competition in financial markets

Article Abstract:

A study was conducted to analyze the functions of information technology (IT) in securities trading, trading strategies and IT investment decisions. Several factors influence IT investment decisions, including costs, number of traders and the nature of new information. These decisions, which anticipate trading profits, are supported by IT infrastructures characterized by information systems, technical expertise, systems development tools, databases and standards. Results show how traders react to market imperfections associated with trading costs and delays in information processing. Traders optimize their trading profits by taking into consideration the expected actions of other traders and transaction costs.

Financial Services, Finance and Insurance, Security and Commodity Services, Securities & Commodities Services, Securities, Commodity Contracts, and Other Financial Investments and Related Activities, Information Systems & Theory, Decision-making, Decision making, Management, Stocks, Information technology, Securities industry, Information management, Financial markets

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Information and organization for horizontal multimarket coordination

Article Abstract:

A theoretical model that can be used to describe the effects of different coordination structures (CS) or information systems on the performance of companies experiencing demand uncertainty in various geographical areas or countries is presented. These coordination structures include a centralized CS, a decentralized Cs and a fully distributed CS. On the other hand, the value of coordination (VC) variable under this model is defined as the difference in profit between the decentralized and distributed CS. The model revealed several issues, namely: the importance of co-locating knowledge and its use in the decision-making process and the endogenous characteristic of the informational endowment in the firm.

Models, Telecommunications systems, Business enterprises, Information systems

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