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New research on cost from Harvard Business School faculty on issues including cost management, and why explaining what it costs to produce a product can potentially increase its sales.
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How Cost Accounting is Improving Healthcare in Rural Haiti

by Carmen Nobel

The cost of healthcare in rural Haiti was found to vary widely, even inside the same health organization. A pioneering cost accounting system co-developed by Robert Kaplan was called in to determine the cause. Open for comment; Comment(s) posted.

Targeted Price Controls on Supermarket Products

by Alberto Cavallo and Diego Aparicio

Governments sometimes consider targeted price controls when popular goods become less affordable. Looking at price controls in Argentina between 2007 and 2015, this study’s findings suggest that new technologies like mobile phones are allowing governments to better enforce targeted price control programs, but the impact of these policies on aggregate inflation is small and short-lived.

Electronic Health Records Were Supposed to Cut Medical Costs. They Haven't.

by Roberta Holland

Digitizing patient information promised to cut health care costs by driving down administrative expenses. So why can it cost a doctor more than $200 to process a single bill? New research by Robert Kaplan and colleagues. Open for comment; Comment(s) posted.

Transaction Costs and the Duration of Contracts

by Alexander MacKay

When buyers transact with sellers, they select not only whom to transact with but also for how long. This paper develops a model of optimal contract duration arising from underlying supply costs and transaction costs. The model allows for the quantification of transaction costs, which are often unobserved, and the impact of these costs on welfare.

Cost-cutting Leads to Turbulence in the Airline Industry

Re: Susanna Gallani

When a business known for delivering an exemplary customer experience faces cutbacks, what services get chopped? Assistant Professor Susanna Gallani discusses a recent case study about an airline that looks not just to survive a downturn but emerge stronger. Open for comment; Comment(s) posted.

Deconstructing the Price Tag

by Dina Gerdeman

A new study by Bhavya Mohan, Ryan Buell, and Leslie John has an important conclusion for retailers: Explaining what it costs to produce a product can potentially increase its sales. Open for comment; 10 Comment(s) posted.

Advertising: It’s Not ‘Mad Men’ Anymore

by Michael Blanding

Three major forces have changed advertising since Don Draper last prowled the corridors of Sterling Cooper. Professor Emeritus Alvin J. Silk's decades of research finds an industry that, while evolving in fundamental ways, is healthy and creative. Open for comment; 5 Comment(s) posted.

How to Avoid a Price Increase

by Manda Salls

Consumers hate price increases, but what is a company to do when material costs skyrocket? One answer: Think small. Professor John Gourville considers the alternative in this Q&A. Closed for comment; 0 Comment(s) posted.