Information Technology and Investment Incentives in Distributed Operations

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dc.contributor.authorNault, Barrie R
dc.date.accessioned2015-05-27T19:58:20Z
dc.date.available2015-05-27T19:58:20Z
dc.date.issued1997-06
dc.description*INFORMS: unless published under the open access option, the publisher will provide a specific copy of the paper that can be posted to a web page https://www.informs.org/Find-Research-Publications/INFORMS-Journals/Rights-Permissions#work. Publisher's copy deposited according to publisher's policy. 05/25/2015en_US
dc.description.abstractIn distributed operations with positive externalities between branches, local underinvestment occurs because one branch does not account for the impact of its actions on other branches. Previous work found that an IT-enabled incentive mechanism called “ownership of customers” (OoC) reduced the problem of local underinvestment by accounting for inter-branch transactions. This report examines the impact of including investment by a central office on the set of previously developed results for local investment by branches. It shows that ownership of customers can reduce the problem of both central and local underinvestment. It also demonstrates how central investment can yield second-best levels of profitability—optimal profits given contracting problems in local investment with branches. It highlights how charging branches a unit fee to fund the needed level of central investment is consistent with that second-best solution.en_US
dc.identifier.citationNault, B.R., "Information Technology and Investment Incentives in Distributed Operations," Information Systems Research, 8, 2 (June 1997), 196-202.en_US
dc.identifier.doihttp://dx.doi.org/10.11575/PRISM/28802
dc.identifier.issn1047-7047 Print
dc.identifier.issn1526-5536 Online
dc.identifier.urihttp://hdl.handle.net/1880/50458
dc.language.isoenen_US
dc.publisherINFORMSen_US
dc.publisher.corporateUniversity of Calgaryen_US
dc.publisher.departmentManagement Information Systemsen_US
dc.publisher.facultyHaskayne School of Businessen_US
dc.publisher.institutionUniversity of Calgaryen_US
dc.subjectPositive Network Externalitiesen_US
dc.subjectCentralizationen_US
dc.subjectDecentralizationen_US
dc.subjectChannelsen_US
dc.subjectOwnership of Customer'sen_US
dc.subjectUnderinvestmenten_US
dc.subjectBranch Operationsen_US
dc.subjectFranchisingen_US
dc.titleInformation Technology and Investment Incentives in Distributed Operationsen_US
dc.typejournal article
thesis.degree.disciplineManagement Information Systemsen_US
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