Entry limiting agreements: First‐mover advantage,authorized generics,and pay‐for‐delay deals

During patent litigation, pay‐for‐delay (P4D) deals involve a payment from a patent holder of a branded drug to a generic drug manufacturer to delay entry and withdraw the patent challenge. In return for staying out of the market, the generic firm receives a payment, and/or an authorized licensed entry at a later date, but before the patent expiration. We examine why such deals are stable when there are multiple potential entrants. We combine the first‐mover advantage for the first generic with the ability of the branded manufacturer to launch an authorized generic (AG) to show when P4D deals are an equilibrium outcome. We further show that limiting a branded firm's ability to launch an AG before entry by a successful challenger will deter such deals. However, removing exclusivity period for the first generic challenger will not.     

Three‐period,two‐treatment crossover design under long‐term carryover effect

The paper describes non‐parametric approach for analysis of a three‐period, two‐treatment, four‐sequence crossover design in which test procedure for interchangeability of the treatment effects is obtained. The proposed procedure is based on a non‐parametric model, which incorporates, along with the direct treatment effects and the usual carryover effects, the long‐term carryover effects. Relevant competitors are obtained. Related asymptotic results are given. By performing simulation study, we compared the procedures with respect to type I error rate and power. Furthermore, confidence intervals for treatment differences are studied. The procedures are illustrated with a data study.     

CLIMATE POLITICS,STRATEGIC BEHAVIOUR,HOLD‐OUTS,FREE RIDERS AND RENT‐SEEKERS

This paper examines recent developments in US climate change policy from a public choice perspective. Policies such as ‘cap and trade’ threaten to impose substantial costs on individuals and businesses, yet their effectiveness at reducing greenhouse gas emissions is questionable. Support for legislation that restricts emissions can partly be explained by the strategic behaviour of various special interests.     

Hospital competition under pay‐for‐performance: Quality,mortality, and readmissions

Health outcomes, such as mortality and readmission rates, are commonly used as indicators of hospital quality and as a basis to design pay‐for‐performance (P4P) incentive schemes. We propose a model of hospital behavior under P4P where patients differ in severity and can choose hospital based on quality. We assume that risk‐adjustment is not fully accounted for and that unobserved dimensions of severity remain. We show that the introduction of P4P which rewards lower mortality and/or readmission rates can weaken or strengthen hospitals' incentive to provide quality. Since patients with higher severity have a different probability of exercising patient choice when quality varies, this introduces a selection bias (patient composition effect) which in turn alters quality incentives. We also show that this composition effect increases with the degree of competition. Critically, readmission rates suffer from one additional source of selection bias through mortality rates since quality affects the distribution of survived patients. This implies that the scope for counterproductive effects of P4P is larger when financial rewards are linked to readmission rates rather than mortality rates.     

Part‐Time Work,Fixed‐Term Contracts,and the Returns to Experience

Using data from Spanish Social Security records, we investigate the returns to experience for female workers in different flexible work arrangements. Our model consists of four random‐effects equations simultaneously estimated using Markov Chain Monte Carlo techniques. We find a large negative wage effect of working part‐time (PT), which differs by motherhood status and contract type. We also find that working PT involves lower returns to experience than standard full‐time employment and thus a substantial negative wage effect accumulates over time for those employed PT. Finally, our simulations reveal that working PT also raises the probability of working under a fixed‐term contract.     

Post‐Childe,Post‐Wirth: Response to Smith,Ur and Feinman

This is a reply to a critique of Jane Jacobs' ‘cities first' thesis with respect to agricultural origins. The critique's basic premise is that the archaeological record regarding the development of agriculture precedes the earliest cities and therefore the thesis is empirically refuted. Accepting this archaeological record for agriculture, the dispute centres on the archaeological record for city origins. Substituting a process definition of cities—city‐ness—for a ‘thing' definition (e.g. monumentality), this reply opens up pre‐Mesopotamian possibilities for city networks while conceding the difficulty in empirically obtaining evidence in earlier periods. Thus Jacobs' thesis cannot be absolutely refuted, and an exciting agenda for urban research emerges for archaeologists and social scientists.     

Recruiting,paying and training 16‐ and 17‐year‐old school leavers

This article examines firms' pay and employment practices in respect of school leavers aged 16 and 17. The focus is on the manufacturing, hospitality, construction, hairdressing and retail sectors, which are notable for employing relatively large numbers of young workers. Drawing on findings from a postal questionnaire survey of managers and interview data from 28 organisations, the article explores the reasons why firms choose to employ school leavers, the types of jobs that they are considered for and the pay and training they receive. The article also examines the considerations that influence employers' pay practices and the relationship between training activity and average wage levels.     

Anti‐Communism,The Growth Machine and the Remaking of Cold‐War‐Era Pittsburgh

This article develops a new perspective on urban growth machines through an analysis of the relationship between Pittsburgh's Renaissance and cold‐war‐era anti‐communism. In order to facilitate urban (re)development, growth machines foster a shared sense of metropolitan citizenship and a corresponding ideological belief that coalitions of business, government and other elite actors can renew regions for the collective good of their residents. During the early years of the cold war, anti‐communism was a key means by which growth machines could create this shared sense of metropolitan belonging. The members of Pittsburgh's widely celebrated growth coalition used anti‐communism to advance their interests in four key ways: (1) by encouraging residents to see the Renaissance as part of the larger struggle against communism; (2) by eliminating a deeply rooted radical political culture; (3) by, in the process, curtailing opposition to their effort to remake the region into a post‐industrial economy based on free capital mobility; and (4) by having it serve as a shared tactic and ideology that stitched together and legitimated capitalist development at all scales from the factory to the globe. Pittsburgh's Renaissance provides an important example of how growth machines not only produce space, but also citizenship and the conditions of political possibility.