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An exploration of the competitive value of an accurate accounting system
Author(s) -
Moriarity Shane
Publication year - 2005
Publication title -
abacus
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.632
H-Index - 45
eISSN - 1467-6281
pISSN - 0001-3072
DOI - 10.1111/j.1467-6281.2005.00168.x
Subject(s) - value (mathematics) , subsidy , product (mathematics) , accounting information system , accounting , economics , microeconomics , industrial organization , business , computer science , mathematics , geometry , machine learning , market economy
The value of an accurate accounting system is compared to one that introduces a cross‐subsidy. In a two‐product experimental market the accurate system is shown to provide value when a competitor has a system that introduces a cross‐subsidy. The value appears to arise from better product‐mix decisions. But it is likely that this value is transitory, explaining in part why observational studies of practice have found it difficult to document sustained value from improved information systems.