Research note: an analytical perspective on market decisions and asymmetric cost behavior

Riegler, Christian and Weiskirchner-Merten, Katrin ORCID: (2020) Research note: an analytical perspective on market decisions and asymmetric cost behavior. Review of Managerial Science, 15. pp. 991-1005. ISSN 1863-6691

Available under License Creative Commons: Attribution 4.0 International (CC BY 4.0).

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Asymmetric cost behavior has attracted the interest of many (empirical) researchers in the last years. Prior research determines several sources of this behavior such as resource adjustment costs, uncertainties and related beliefs, agency problems, and fixed costs. Empirical studies measure firms’ cost behavior using total firm costs and sales. In imperfect markets, firms react to changing market conditions by adapting output prices and quantities so that both total firm costs and sales are affected. However, changing output prices only directly affects sales and not costs. Based on an economic model, we identify market decisions (output quantity and pricing decisions) as an additional source of measured asymmetric cost behavior.

Item Type: Article
Keywords: Asymmetric cost behavior, Market decisions, Pricing, Imperfect markets
Classification Codes: Mathematics Subject Classification 91B99
Divisions: Departments > Finance, Accounting and Statistics > Accounting and Auditing > Unternehmensrechnung und Controlling
Version of the Document: Published
Depositing User: Gertraud Novotny
Date Deposited: 10 Feb 2020 15:46
Last Modified: 30 Apr 2021 12:30
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