Advertising as special service provision under non-price vertical restraints: exclusive territories in beer distribution

This article presents statistical evidence which supports Lester Telser's 1960 hypothesis, that when vertical restraints are made illegal, intrabrand competition results which diminishes the provision of point-of-sale, special services. This results because of the public goods problem exhibited by the special services. Increased special service provision by the national manufacturer must then substitute for the special service provision left unfilled by the wholesaler. Evidence relating to the efficacy of such substitution is also presented.     

Recognizing and Resolving Social Dilemmas in Supply Chain Public–Private Partnerships

The public–private partnership (PPP) is a popular strategy for creating global sustainable value. However, many PPPs struggle to realize their value‐added potential. Why do some public–private partnerships succeed while others fail, and how may those struggling succeed? Combining supply‐chain integration and social dilemma perspectives into the conversation of PPPs, we examine the dynamics and psychology of cooperation necessary for PPP success. Addressing the first part of our research question, we recognize three social dilemmas that can manifest while managing PPP supply chains: a give‐some dilemma, a take‐some dilemma, and a give‐or‐take‐some dilemma. To address the second part of our research question, we present a taxonomy of strategies resolving these PPP social dilemmas through the enhancement of trust, self‐efficacy, and social responsibility. We discuss implications for PPPs, supply‐chain, and social dilemma literatures.     

The Economics Olympics: Ranking U.S. Economics Departments Based on Prizes,Medals, and Other Awards

This study ranks the top 25 U.S. economics departments on the basis of four prestigious awards won/held by these departments' current faculty: the Nobel Prize in Economic Sciences, the John Bates Clark Medal, the American Economic Association's (AEA's) Distinguished Fellow Award, and the American Economic Association's Richard T. Ely Lecturer. Based on our methodology, the top economics department is affiliated with the University of Chicago. This distinction stems from its affiliation with six Nobel Prize winners, four Clark Medal winners, and two participants each in the AEA Distinguished Fellow and Richard T. Ely Lecturer categories.     

A Monte Carlo simulation estimating US hospital cost reductions associated with hypotension control in septic ICU patients

Objective: This economic analysis extends upon a recent epidemiological study to estimate the association between hypotension control and hospital costs for septic patients in US intensive care units (ICUs).

Methods: A Monte Carlo simulation decision analytic model was developed that accounted for the probability of complications—acute kidney injury and mortality—in septic ICU patients and the cost of each health outcome from the hospital perspective. Probabilities of complications were calculated based on observational data from 110?US hospitals for septic ICU patients (n?=?8,782) with various levels of hypotension exposure as measured by mean arterial pressure (MAP, units: mmHg). Costs for acute kidney injury (AKI) and mortality were derived from published literature. Each simulation calculated mean hospital cost reduction and 95% confidence intervals based on 10,000 trials.

Results: In the base-case analysis hospital costs for a hypothetical “control” cohort (MAP of 65?mmHg) were $699 less per hospitalization (95% CI: $342–$1,116) relative to a “case” cohort (MAP of 60?mmHg). In the most extreme case considered (45?mmHg vs 65?mmHg), the associated cost reduction was $4,450 (95% CI: $2,020–$7,581). More than 99% of the simulated trials resulted in cost reductions. A conservative institution-level analysis for a hypothetical hospital (which assumes no benefit for increasing MAP above 65?mmHg) estimated a cost decline of $417 for a 5?mmHg increase in MAP per ICU septic patient. These results are applicable to the US only.

Conclusions: Hypotension control (via MAP increases) for patients with sepsis in the ICU is associated with lower hospitalization cost.     

Evaluating the impact of TRIZ creativity training: an organizational field study

Creativity training is used by many organizations in an attempt to improve the innovativeness of their employees, yet there has been relatively little systematic evaluation carried out of the impact of such training. This study reports on the evaluation of the effectiveness of a theory of inventive problem solving (TRIZ)‐based creativity training program in a major international engineering firm. Cross‐sectional, longitudinal and multisource evaluation strategies were used to assess the impact of the training on a sample of design engineers (n = 123) and to make comparisons with nontrainees (n = 96). Results indicate that participation in TRIZ training led to short‐term improvements in both the creative problem‐solving skills and motivation to innovate of engineers, and these were associated with longer term improvements in their idea suggestion in the workplace. There was variable support for the translation of these ideas into new innovations and improved performance at work as a result of the training. Theoretical and practical implications for enhancing the effectiveness of creativity training interventions are discussed.     

Exchange rate uncertainty and the level of investment in selected South-east Asian countries

The effect of real exchange rate uncertainty on aggregate private investment in Indonesia, Malaysia, the Philippines and Thailand is examined using time series data from 1972–2000. Since the use of non-stationary time series data may produce spurious results, the data series are tested for stationarity using the augmented Dickey–Fuller and Phillips–Perron tests. After establishing the stationarity of the data series, cointegration tests are performed. The cointegration test results reject the hypothesis of no cointegration. Therefore, an error correction model is developed and estimated. The estimated results point to an inconclusive empirical relationship between real exchange rate volatility and aggregate private investment.     

Intellectual property rights and foreign direct investment

This paper develops a product cycle model with endogenous innovation, imitation, and foreign direct investment (FDI). We use this model to determine how stronger intellectual property rights (IPR) protection in the South affects innovation, imitation and FDI. We find that stronger IPR protection keeps multinationals safer from imitation, but no more so than Northern firms. Instead, the increased difficulty of imitation generates resource wasting and imitation disincentive effects that reduce both FDI and innovation. The greater resources absorbed in imitation crowd out FDI. Reduced FDI then transmits resource scarcity in the South back to the North and consequently contracts innovation.     

On intrabrand and interbrand competition: The strategic role of fees and royalties

We examine oligopolistic markets with both intrabrand and interbrand competition. We characterize equilibrium contracts involving a royalty (or wholesale price) and a fee when each upstream firm contracts with multiple downstream firms. Royalties control competition between own downstream firms at the expense of making them passive against rivals. When the number of downstream firms is endogenous, each upstream firm chooses to have only one downstream firm. This result is in sharp contrast to previous literature where competitors benefit by having a larger number of independent downstream firms under only fixed fee payments. We discuss why allowing upstream firms to charge per-unit payments in addition to fixed fees dramatically alters their strategic incentives.     

Employee age and voluntary development activity

It is known that older workers undertake less formal training than younger ones, but little information is available about age-patterns in voluntary development activities undertaken in an employee’s own time. In a study of 1798 manufacturing workers, age and ten other factors were examined in relation to four types of activity: participation in a tuition refund scheme, learning in an employee development programme, attendance at an employee development centre, and use of a personal development record. Significant age- differences were found, and key influential factors were identified as older workers’ lower educational qualifications (representing both cognitive and affective differences) and their more limited learning motivation (linked to lower learning confidence and greater perceived time constraints). However, older individuals who had previously undertaken each form of development were as positive about that previous activity as were younger participants. Possible interventions to increase voluntary development at older ages include rewards for participation, enhancement of basic skills, pretraining in appropriate learning strategies, sequential exposure to graded learning demands, and steps to change organisational stereotypes of older staff.     

Desertification in Africa

This article looks at desertification — both on a global scale and as it relates to Africa. Desertification is defined here as the diminution or destruction of the biological potential of the land, and is caused basically by overuse of inherently fragile productive systems. After distinguishing between desertification and drought (two closely related ecological hazards), the author goes on to outline the terrible effects of desertification and the impact it has on the world population's ability to feed itself. Finally, recommendations to halt and reverse desertification are looked at together with attempts to mobilize the resources needed to face this global problem.