what does that "influence cost" meas?

Hmm ... I only remember 'opportunity cost'. Which chapter is this term in?

I have not heard of this term either (And I have a degree in economics) but it could be in reference to the cost of marketing and gaining customers.

Hi,

If you use google to search for 'Complementarity, Influence Cost, and Equity', you will find a paper on this topic written by Eva M. Meyersson Milgrom of Stanford University.

She seems to use the term 'influence costs' to refer to the costs incurred inside an organization when you change that organization, ie the costs of 'resistance to change'. S

0 YES! That's it! Spot on!0-

Heres an example of influence costs, when a company such as an auto maker decides to make more than just cars, say for example, brake pads. There will be an internal agent in the company responsible for producing those brake pads, a manager so to speak. This manager will have to adhere to goals established by the board of directors in the company, but will not be directly supervised in getting t

Milgrom and Roberts came up with this term. This is briefly how they describe it:

If capital is scarce, then when resources are allocaed to one devision or department, fewer recources are available to be allocated to others. Managers will attempt to influence this allocation. Influence costs include not only the the direct costs of influence activities(e.g., time wasted on going to headq

influence costs are related to the `internal capital markets` withing the company to allocate financial and human resources. If internal capital is scarce, then when resources are allocated to one division, fewer resources are available to be allocated to others. Managers would attempt to influence this allocation.

Influence costs include not only the direct costs of influence activities