Game Theory in Management Accounting: Implementing Incentives and Fairness

by David Mueller, Ralf Trost

Overview

This book demonstrates what kind of problems, originating in a management accounting setting, may be solved with game theoretic models. Game theory has experienced growing interest and numerous applications in the field of management accounting. The main focus traditionally has been on the field of non-cooperative behaviour, but the area of cooperative game theory has developed rapidly and has received increasing attention. Intensive research, in combination with the changing culture of publishing, has produced a nearly unmanageable number of publications in the areas concerned. Therefore, one main purpose of this volume is providing an intensive analysis of the intersection of these areas. In addition, the book strengthens the relationship between the theory and the practical applications and it illustrates the two-sided relationship between game theory and management accounting: new game theoretic models offer new fields of applications and these applications raise new questions forthe theory.

Product Details

ISBN-13:	9783319616025
Publisher:	Springer International Publishing
Publication date:	09/22/2017
Series:	Contributions to Management Science
Edition description:	1st ed. 2018
Pages:	450
Product dimensions:	6.10(w) x 9.25(h) x (d)

About the Author

David Mueller is Professor of Management Accounting and Control at Brandenburg University of Technology (BTU) Cottbus-Senftenberg. His research interests are cost accounting, life-cycle costing, real options, and cooperative game theory

Ralf Trost is Professor of Finance in the Faculty of Economic Sciences and Media at Ilmenau University of Technology and recived his doctorate and his habilitation at the University of Augsburg.

Table of Contents

Part. 1. Setting Incentives for Managers: Incentive Compatibility, Similarity Rule, and Goal Congruence.- 2. Reflections on the Practical Applicability of Strategic Game Theory to Managerial Incentivation.- 3. Optimal Design of Incentive Contracts: Behavioural and Multi-Period Performance Measurement Aspects.- 4. Transfer Prices for Coordination under Decentralized Decision Making.- 5. Managerial Compensation, Investment Decisions, and Truthfully Reporting.- 6. Interorganizational Resource Sharing in Research and Development Alliances.- 7. Differences in Social Preferences: Are They Profitable for the Firm?.- 8.Applications and Potentials of Auction Theory in Management Accounting.- 9. The Use of Auction in Nurse Rostering.- Part 2: CooperativeModels – Models of Fairness and its Applications.- 10. Fair Distribution of Cooperation Gains in Supply Chains – A Justification Program from an Economic Point of View.- 11. The Pre-Kernel as a Fair Division Rule for some Cooperative Game Models.- 12. A Talmudic Approach to Bankruptcy Problems.- 13. Sharing the Costs of Access to a Set of Public Goods.- 14. The SD-prenucleolus for TU-Games: Coalitional Monotonicity and Core Stability.- 15. A Shapley Value for Games with Authorization Structure.- 16. Placing Joint Orders when Holding Costs are Negligible and Shortages are not Allowed.- 17. Corporation Tax Games: An Application of Linear Cost Games to Managerial Cost Accounting.- 18. Characteristics of the τ -value and the χ -value.- 19. The Usability and Suitability of Allocation Schemes for Corporate Cost Accounting.

What People are Saying About This

From the Publisher

“Game theory is considered by many people as probably the most widely adopted and a very relevant paradigm in human knowledge in the contemporary world. This view is supported by the fact that a significant number of academics have won the Noble Prize for their work in the area of game theory. "Game Theory in Management Accounting" is a new book on this important paradigm of game theory in Accounting As there was no full book on game theory in Accounting until the publication of this book, there was a major vacuum in the Accounting literature which is now filled in by the publication of this book. It is expected that this book will be an extremely interesting and useful reference book to many academics and professionals, not only in Accounting but in many non-Accounting disciplines, around the world for many decades to come.” (Dr. Sardar M. N. Islam Ph.D., LL.B., Professor, College of Business, Victoria University, Australia)