Course requirements

The course readings will be sent to the participants in time. It will be each student’s responsibility to read the assigned papers prior to the course, and to be ready to engage in discussion. We expect active participation.


Course readings

Part I: Planning Capacity Investment Decisions

  • Gramlich and Ray. 2016. Reconciling Full-Cost and Marginal-Cost Pricing. Journal of Management Accounting Research.
  • Reichelstein and Rohlfing-Bastian. 2015. Levelized Product Cost: Concept and Decision Relevance. The Accounting Review.
  • Rogerson. 2011. On the Relationship Between Historic Cost, Forward Looking Cost and Long-Run Marginal Cost. Review of Network Economics.
  • Rajan and Reichelstein. 2009. Depreciation Rules and the Relation between Marginal- and Historical Cost. Journal of Accounting Research.
  • Reichelstein and Sahoo. 2018. Relating Product Prices to Long-Run Marginal Cost: Evidence from Solar Photovoltaic Modules. Contemporary Accounting Research.
  • Ederhof, Nagar and Rajan. 2019. How Economically Significant Are Unused Capacity Cost? A Large Scale Empirical Analysis. Management Science, forthcoming.

 Part II: Measuring and Controlling the Profitability of Capacity Investments

  • Baldenius. 2009. Internal Pricing. Foundations and Trends in Accounting.
  • Dutta. 2008. Dynamic Performance Measurement. Foundations and Trends in Accounting.
  • Baldenius, Nezlobin and Vaysman. 2016. Managerial Performance Evaluation and Real Options. The Accounting Review.
  • Rogerson. 2008. Intertemporal Cost Allocation and Investment Incentives. Journal of Political Economy.
  • Nezlobin, Reichelstein and Wang. 2015. Managerial Performance Evaluation for Capacity Investments. Review of Accounting Studies.
  • Pfeiffer, Schiller and Wagner. 2009. Cost-based Transfer Pricing. Review of Accounting Studies.
  • Dutta and Reichelstein. 2010. Decentralized Capacity Management and Internal Pricing. Review of Accounting Studies.
  • Dutta and Reichelstein. 2020. Capacity Rights and Full Cost Transfer Pricing. Management Science, forthcoming.