Federal Water Resources Policy and Decision-Making: Their Formulation Is Essentially a Political Process Conditioned by Government Structure and Needs

A bstract . The effects that politics, government structure , and economic standards have upon federal water resources planning are examined. Water resources policy decisions are treated as a product of political demands which, in turn, are examined as a product of the direct or indirect stakes, or perception thereof, in a policy. Government structure also affects decisions, since it affects political access and, subsequently, power as well as the administrative capacity of government. Economic standards , such as a requirement that water projects contribute to national economic development , arise within a political context. Formulation of federal water resources policy is essentially a political process that is conditioned to some extent by government structure and planning standards such as economic requirements. Thus, recommendations to improve the product of this process must take into account its essential nature. Examples are drawn from the western reclamation and water pollution experiences.     

Cost-analysis model of colonoscopy preparation using split-dose reduced-volume oral sulfate solution (OSS) and polyethylene glycol with electrolytes solution (PEG-ELS)

Objective:

The study aimed to (1) develop a cost model for colonoscopy preparation among patients referred for colonoscopy using split-dose reduced-volume oral sulfate solution (OSS) and generic polyethylene glycol with electrolytes solution (PEG-ELS), (2) examine cost savings associated with OSS vs PEG-ELS, and (3) assess the robustness of the cost model.

Methods:

Efficacy of each agent was based on the results of a 541-patient clinical trial comparing OSS to PEG-ELS. Cleansing agent and colonoscopy procedure costs were calculated from OptumHealth Reporting & Insights claims data for 2010–Q12013. In the model, patients’ colonoscopies were tracked over a 25 or 35 year time period until the patients reached age 75. The difference per patient per year (PPPY) in total cleansing agent and colonoscopy procedure costs over the time horizon between the OSS and PEG-ELS cohort was calculated. One-way sensitivity analyses were conducted to test the robustness of the cost model.

Results:

The model showed lower cost for OSS patients over the time horizon. Total PPPY costs were $280.34 for the OSS cohort and $296.36 for the PEG-ELS cohort, resulting in a cost saving of $16.01 PPPY for the OSS cohort. This was due primarily to OSS patients having fewer colonoscopies (OSS: 0.158 vs PEG-ELS: 0.170 PPPY). Over the time horizon, cost savings of $4 763 335 were observed among 10, 000 OSS patients. Cost savings switched from OSS to PEG-ELS cohort in four cases: (1) base-case cost of a completed colonoscopy decreased by 75%, (2) base-case cost of OSS increased to over $143 per usage, (3) all non-completers were lost to follow-up, and (4) OSS bowel preparation quality dropped below PEG-ELS to 70%.

Conclusions:

From a payer’s perspective, the model showed that the use of OSS as the cleansing agent resulted in potential cost savings compared with PEG-ELS. Cost savings under OSS remained under various sensitivity analyses.     

BIDDING TO GIVE: AN EXPERIMENTAL COMPARISON OF AUCTIONS FOR CHARITY*

We experimentally compare three mechanisms used to raise money for charities: first‐price winner‐pay auctions, first‐price all‐pay auctions, and lotteries. We stay close to the characteristics of most charity auctions by using an environment with incomplete information and independent private values. Our results support theoretical predictions by showing that the all‐pay format raises substantially higher revenue than the other mechanisms.     

The impact of customer-specific marketing expenses on customer retention and customer profitability

We study the effects of customer-specific marketing expenses on customer retention and customer profitability in a business-to-business setting. Using data from a company providing hygiene services, we look at the impact of a hitherto unstudied type of expense targeted at individual customer relationships: the offering of free equipment to customers. The data allow tracking the activities performed in more than 4,500 customer relationships over a period of 4 years. Retention rates are higher for customers targeted with free equipment, but this effect results from an interaction with customer size. First-order dynamic panel data analyses show that the impact of targeted marketing expenses on customer dollar profit is positive for large customers, but there is no effect for smaller customers. Thus, targeted marketing expenses seem to be a tool for relationship maintenance rather than customer development: they help in retaining large customers that generate more profit, but they do not seem to work in developing new customers into larger, more profitable ones.     

Internet searches and transactions on the Dutch housing market

We use Google searches of the word ‘mortgage’ to explain monthly housing transactions in the Netherlands in the period from 2004 until 2015. Our estimates indicate that Google searches of the previous months are significantly positively associated with housing transactions in the current month. This shows evidence that Internet search data can provide information about real market behaviour.     

Auctions with Financial Externalities

We study auctions with financial externalities, i.e., auctions in which losers care about how much the winner pays. In the first-price auction, larger financial externalities result in a lower expected price; in the second-price auction, the effect is ambiguous. Although the expected price in the second-price auction may increase if financial externalities increase, the seller is not able to gain more revenue by guaranteeing the losers a fraction of the auction revenue. With a reserve price, we find that both auctions may have pooling at the reserve price. This finding suggests that identical bids need not be a signal of collusion, in contrast to what is sometimes argued in anti-trust cases. We gratefully acknowledge financial support from the Dutch National Science Foundation (NWO 510.010.501 and NWO-VICI 453.03.606). For valuable discussions and comments, we would like to thank Eric van Damme, Jacob Goeree, Thomas Kittsteiner, Marta Kolodziejczyk, seminar participants at Tilburg University, Humboldt University Berlin, and National University of Singapore, and audiences at ESEM 2001 in Lausanne, and the FEEM 2002 conference in Milan on auctions and market design. The suggestions of an anonymous referee of this Journal greatly improved the article. The usual disclaimer applies.     

Blockholder dispersion and firm value

Multiple blockholder structures are a widespread phenomenon in the U.S. The theoretical literature, however, provides conflicting predictions on whether a single large blockholder or a set of dispersed smaller blockholders is better for firm value. Using U.S. data, we find a negative correlation between Tobin's Q and blockholder dispersion. The findings are robust to a wide variety of model specifications and controls and differ from results for other geographic regions such as Europe and Asia.     

Improving operational performance by influencing shopfloor behavior via performance management practices

It is generally believed that companies applying performance management practices outperform those that do not measure and manage their performance. Studies examining the link between performance management and performance improvement implicitly assume that performance management affects behavior of individuals in an organization, which then facilitates the achievement of organizational goals. This study takes a step towards understanding this implicit assumption. We investigate how performance management practices relate to improvement in performance by influencing behavior of individuals. We focus on operational performance management, i.e. the definition and use of performance measures on the shopfloor in production and distribution. We use a survey among 102 companies to identify the relations between performance management practices, shopfloor behavior and improvement in performance. We identified three independent clusters of operator behavior that positively correlate with performance improvement: “Understanding”, “Motivation” and “Focus on Improvement”. We show that 17 out of the 20 performance management practices found in literature have a significant and positive relation with one or more clusters of operator behavior. We furthermore found that there is a positive correlation between the number of performance management practices applied and performance improvement, suggesting that it is not only which practices are applied but also how many. Recommendations emerging from this study enable managers to identify which behavioral changes are desired to improve performance and to select those performance management practices that positively influence the desired behavior.