The Effects of Acuity and Utilization on Nursing Home Costs

Recent proposals aim to relocate relatively healthy residents from nursing homes to lower-cost assisted care facilities. Such a move would have impacts on nursing home costs for two main reasons. It would decrease utilization rates and increase patient care needs, or acuity. A translog cost model is used to examine the impact that acuity and utilization have on nursing home costs. Results indicate that decreasing utilization will reduce total costs for nursing homes. However, increasing acuity will increase total costs. The total effect on nursing home costs of the change in policy is to decrease nursing home total costs but increase nursing home average costs per patient day.     

Optimal make–take fees for market making regulation

We address the mechanism design problem of an exchange setting suitable make– take fees to attract liquidity on its platform. Using a principal–agent approach, we provide the optimal compensation scheme of a market maker in quasi‐explicit form. This contract depends essentially on the market maker inventory trajectory and on the volatility of the asset. We also provide the optimal quotes that should be displayed by the market maker. The simplicity of our formulas allows us to analyze in details the effects of optimal contracting with an exchange, compared to a situation without contract. We show in particular that it improves liquidity and reduces trading costs for investors. We extend our study to an oligopoly of symmetric exchanges and we study the impact of such common agency policy on the system.     

The benefits and pitfalls of contemporary pop-up shops

As e-commerce growth continues to surpass that of brick-and-mortar retail, temporary retail spaces, also known as pop-up shops, are becoming an important promotional strategy, especially for online retailers and service providers. Success in today’s retail environment means being able to create and maintain brand communities, to generate instant and measurable hype, and to deliver personalized consumer experiences—all of which can be readily achieved through a strategically placed physical business presence. In this study, a survey of retailing organizations worldwide reveals that among those that had implemented at least one pop-up shop, more than 80% considered it a success. The results also show that the primary reasons for activating pop-up shops were to create connections with current and potential customers, to increase brand awareness, to introduce a new product or brand to the marketplace, and to stage a new product or brand. While the respondents deemed revenue generated at pop-up shops important, they considered improving market visibility (e.g., through social media, website traffic, or media coverage) a more significant objective. Given the economic potential of pop-up shops, this research provides retailing organizations with guiding principles for developing and operating successful pop-up shops in the current marketplace.     

Understanding unethical retail disposition practice and restraint from the consumer perspective

This research expands marketing's knowledge regarding unethical retail disposition (URD). URD is a type of consumer fraud, whereby consumers purchase an item of merchandise with the intent of using it and returning it to a retailer for a refund. The authors first employ grounded theory methodology to develop an original framework illustrating why consumers engage in either URD participation or restraint; next, they demonstrate empirical support for the framework. The authors support and augment previous URD research by reporting that URD offenders employ eight neutralization techniques to remedy personal guilt associated with committing the fraudulent behavior. This research also takes a novel approach by illustrating that consumers describe six motivations underlying URD restraint. Most concerning for retailers is that four of the six reasons for restraint are tenuous. Thus, consumers who refrain from URD may be easily swayed to participate in this illicit behavior. The authors posit that URD may represent a means by which consumers express disdain and mistrust for contemporary retailers, contributing to the societal discrimination that retail organizations owned by “middlemen minorities” engaged in trade and commerce often experience. © 2010 Wiley Periodicals, Inc.     

The relationship between anomie and unethical retail disposition

Despite potential competitive and customer service advantages of liberal return policies, retailers have tightened policies in response to fraudulent consumer behavior. This article suggests that changes in consumer behavior/retail return policies may be the result of a larger social phenomenon: consumer anomie. This research explores consumer anomie within the context of retailing. Two studies assess the relationships between anomie, materialism, rationalization techniques, and fraudulent marketplace behaviors. Factor analysis corroborates previous research indicating that modern‐day anomie is essentially cynicism. Consumers high in cynicism are more materialistic and more likely than other consumers to employ rationalization techniques in order to justify engaging in unethical retail disposition. Consumers high in cynicism are also found to hold more favorable views toward engaging in fraudulent marketplace behaviors that permit them to benefit at the seller's expense. © 2003 Wiley Periodicals, Inc.     

Redesigning Product Lines with Conjoint Analysis: A Reply to Wittink

Albert Page and Harold Rosenbaum reply to Dick Wittink, noting some additional characteristics of the food processor market. They agree that least-squares regression is another option for analysis and that problems may be introduced by comparing across attributes with differing numbers of levels; however, they argue that other criticisms may lead to additional cost and complexity without necessarily increasing the validity of the results.     

The determinants of entry and exit rates into U.S. manufacturing industries

Entry and exit rates are examined across a fairly large sample of 4-digit U.S. manufacturing industries. Market growth significantly increases (reduces) entry (exit) rates. Profits increase entry rates. Advertising clearly acts as an entry barrier. Sunk capital costs seem to deter exit. While entry and exit rates are related in the sample, whether they are simultaneously determined is unclear.     

Against naive materialism: culture, consumption and the causes of inequality

Economic orthodoxy is narrowly materialistic in that it largelyneglects the cultural significance of commodities. Taking asits starting point Sen's work on capabilities, the paper examinesmodern consumer theory and argues that consumption is an inherentlycomplex activity that requires considerable knowledge and expertiseand which cannot be adequately understood from an individualistpoint of view. It is argued that interpersonal comparisons areconsequently more complicated than is suggested in Sen's workon capabilities, and that an inquiry into the cultural aspectsof consumption encourages a reappraisal of the role of preferencesand sheds light on the deeper causes of inequality.     

Competitiveness rankings of European countries — How much do they tell us?

International competitiveness rankings, of which quite a number exist, enjoy great popularity with the media that, notwithstanding the rankings’ rather shaky theoretical foundations, tend to use them as yardsticks for assessing the achievements or failures of governments. Against this background, the present article asks how consistent major rankings are. Do different rankings give consistent messages both each year and over the course of time so that one can be fairly sure that the results are trustworthy, or is it largely in the eye of the beholder in which ranking he or she should invest more trust, since different rankings lead to by and large different results?