TRADEMARK SALES,ENTRY, AND THE VALUE OF REPUTATION*

We develop an infinite‐horizon, overlapping‐generations model of reputation in which consumers base willingness to pay for agent services on past performance summarized by a trademark. We show that when trademarks can be sold, successful firms capture the full value of their reputations upon sale but receive smaller premia for good performance while active as service providers. With discounting, all agents are worse off with trademark trade. Taking entry cost into account, we show that trademark trade typically reduces entry. When entry costs are high, welfare is increased by prohibiting such trade.     

In defence of generalized Darwinism

Darwin himself suggested the idea of generalizing the core Darwinian principles to cover the evolution of social entities. Also in the nineteenth century, influential social scientists proposed their extension to political society and economic institutions. Nevertheless, misunderstanding and misrepresentation have hindered the realization of the powerful potential in this longstanding idea. Some critics confuse generalization with analogy. Others mistakenly presume that generalizing Darwinism necessarily involves biological reductionism. This essay outlines the types of phenomena to which a generalized Darwinism applies, and upholds that there is no reason to exclude social or economic entities.

Healthcare resource use and costs of privately insured patients who switch,discontinue, or persist on anti-muscarinic therapy for overactive bladder

Objectives:

To compare the healthcare costs of patients with overactive bladder (OAB) who switch vs persist on anti-muscarinic agents (AMs), describe resource use and costs among OAB patients who discontinue AMs, and assess factors associated with persisting vs switching or discontinuing.

Methods:

OAB patients initiating an AM between January 1, 2007 and March 31, 2012 were identified from a claims database of US privately insured beneficiaries (n?≈?16 million) and required to have no AM claims in the 12 months before AM initiation (baseline period). Patients were classified as persisters, switchers, or discontinuers, and assigned a study index date based on their AM use in the 6 months following initiation. Baseline characteristics, resource use, and costs were compared between persisters and the other groups. Resource use and costs in the 1 month before and 6 months after the study index date (for switchers, the date of index AM switching; for persisters, a randomly assigned date to reflect the distribution of the time from AM initiation to switching among switchers) were also compared between persisters and switchers in unadjusted and adjusted analyses. Factors associated with persisting vs switching or discontinuing were assessed.

Results:

After controlling for baseline characteristics and costs, persisters vs switchers had significantly lower all-cause and OAB-related costs in both the month before (all-cause $1222 vs $1759, OAB-related $142 vs $170) and 6 months after the study index date (all-cause $7017 vs $8806, OAB-related $642 vs $797). Factors associated with switching or discontinuing vs persisting included index AM, younger age, and history of UTI.

Conclusion:

A large proportion of OAB patients discontinue or switch AMs shortly after initiation, and switching is associated with higher costs.     

Aiding Decision Making to Reduce the Impacts of Climate Change

Utilizing theory and empirical insights from psychology and behavioural economics, this paper examines individuals’ cognitive and motivational barriers to adopting climate change adaptation and mitigation measures that increase consumer welfare. We explore various strategies that take into account the simplified decision-making processes used by individuals and resulting biases. We make these points by working through two examples: (1) investments in energy efficiency products and new technology and (2) adaptation measures to reduce property damage from future floods and hurricanes. In both cases there is a reluctance to undertake these measures due to high and certain upfront costs, delayed and probabilistic benefits, and behavioural biases related to this asymmetry. The use of choice architecture through framing and the use of default options coupled with short-term incentives and long-term contracts can encourage greater investment in these measures.     

Understanding users' performance evaluation of IT solutions

Traditionally, buying center research in business marketing has long focused on the role of various buying center members, including users, in influencing purchasing decisions. Recent studies have also established the important role users play in successfully implementing information technology (IT) initiatives of buying organizations and its influence on future relationships with sellers. Consequently, in order to ensure future business, marketers need users to evaluate their solutions favorably. This study attempts to understand the factors influencing user evaluation of performance of sellers' IT solutions. Based on an inter-disciplinary approach, a model of antecedent factors to explain user evaluation of suppliers IT solutions is proposed and tested. Results gleaned from a survey of 361 users of Internet-based technology in an automotive supply chain indicate that user attitudes toward technology, satisfaction with the new technology, users' overall understanding of supply chain management principles, and job-related consequences influence user evaluation of IT solutions.     

<Emphasis Type="Italic">Leegin</Emphasis> and the Economics of Resale Price Maintenance

When the U.S. Supreme Court overturned its century-old precedent that treated resale price maintenance (RPM) as a per se violation of the antitrust laws, it signaled approval for the vertical restraint’s widespread use. But the increased use of RPM occurred under a pre-existing rule that permitted RPM as long as no formal agreement over price was reached. This paper documents not only the increased use of RPM post Leegin but also the importance of avoiding the appearance of agreements to control resale prices. The paper then discusses how plaintiffs, previously enamored of claims of RPM, are now recasting vertical RPM arrangements as ancillary to horizontal agreements among distributors that are made effective though enforcement by producers.     

Khaosan Road: an evolving backpacker tourist enclave being partially reclaimed by the locals

Backpacker tourist enclaves dot the globe but have been little studied. The present study examined the structure and functioning of Khaosan Road; Bangkok's large archetypal backpacker bubble. It gauged basic dimensions such as tourist area spread, guesthouse and business numbers, and tourist economic and social impact. It surveyed tourist demographics, travel motives, behaviour, and reactions to and uses of the area, and characteristics and reactions of Thai visitors and street vendors. The area is a complex, evolving system with mixed ownership and functions. It is expanding, going up‐market and becoming a key nightlife area for young Thais. Overdevelopment may alter its appeal to backpackers. The data give a detailed picture of one backpacker enclave, which may partly generalise to others. Copyright © 2005 John Wiley & Sons, Ltd.