Statistical Implications of the Revenue Transfer Methodology in the Affordable Care Act

The Affordable Care Act (ACA) includes a permanent revenue transfer methodology that provides financial incentives to health insurance plans that have higher than average actuarial risk. In this article, we derive some statistical implications of the revenue transfer methodology in the ACA. We treat as random variables the revenue transfers between individual insurance plans in a given marketplace, where each plan’s revenue transfer amount is measured as a percentage of the plan’s total premium. We analyze the means and variances of those random variables and deduce from the zero-sum nature of the revenue transfers that there is no limit to the magnitude of revenue transfer payments relative to plans’ total premiums. Using data provided by the American Academy of Actuaries and by the Centers for Medicare & Medicaid Services, we obtain an explanation for empirical phenomena that revenue transfers were more variable and can be substantially greater for insurance plans with smaller market shares. We show that it is often the case that an insurer that has decreasing market share will also have increased volatility in its revenue transfers.     

Facilitators and Inhibitors of Collective Action: A Case Study of a US‐Owned Manufacturing Plant

This article develops a theoretical model of collective action at work using the key concepts of mobilization triggers, facilitating factors, and inhibiting factors. It then illustrates the value of this model for understanding why a low‐pay, low‐skill, blue‐collar manufacturing facility remained non‐union, drawing primarily on the accounts of a limited sample of redundant workers. These accounts are used to demonstrate the importance of social contexts where inhibiting conditions dominate and where management practices succeed in gaining worker consent and forestalling a collective response from workers.     

Simulation optimization-based decision support tool for steel manufacturing

To buffer against increasing global competition and variability in the price of raw materials, steel manufacturers continuously strive to improve operations and lower costs. In this research, we employ a simulation optimization approach to develop a decision support tool to aid in strategic and operational decision-making. Specifically, we investigate work-in-process inventory levels and potential manufacturing process modifications to reduce utilization costs. A simulation model captures the complex nature of the system while an optimizer searches the solution space and sends trial solutions to the simulation for evaluation. Experimentation suggests that significant daily cost savings are possible by modifying current inventory practices and production process capabilities. Overall, the work demonstrates the ability of the solution approach to analyze complex industrial systems and identify potential improvements in a short time frame.     

Ethical leadership and ambidexterity in young firms: examining the CEO-TMT Interface

To enrich the knowledge of the value of ethical leadership in a more entrepreneurial setting, we focus on technology-based young firms and theorize through the lens of CEO-TMT interface whether and how founder-CEOs’ ethical leadership influences young firms’ ambidexterity. We argue that founder-CEOs’ ethical leadership can enhance young firms’ ambidexterity in an indirect way, through promoting top management team (TMT) members’ advice-seeking behavior and team satisfaction. Data from a multi-source and time-lagged survey of founder-CEOs and all TMT members in 81 Chinese technology-based young firms supported our predictions. We discuss the theoretical and practical implications of our study to the extant research.

     

The Destination Marketing Organization as an intelligent agent: Evaluating engagement in knowledge management practices

DMOs have been increasingly called upon to adopt the role of knowledge management, becoming intelligent agents with the capacity to gather, assess, and disseminate information among internal and external stakeholders. While knowledge management has remained a prominent topic in the literature, its application within the field of tourism management has been limited. The purpose of this study, therefore, was to ascertain to what extent DMOs have engaged in knowledge management practices through a nation-wide survey of 30 Canadian DMOs. The results demonstrate that, while DMOs have made progress toward becoming intelligent agents, there remains a long way to go.     

The effect of trust in management on salespeople’s selling orientation

Marketing Letters - In the following study, a sales rep hard-selling orientation is much more influenced by the hard-selling orientation they perceive senior management want them to adopt when (1)...     

Using virtual reality to increase charitable donations

Marketer interest in using virtual reality (VR) as a persuasion tactic continues to rise. Notably, one sector at the forefront of utilizing this tactic for persuasive means is nonprofit marketing. Many charities have devoted considerable resources to creating VR appeals under the assumption that this medium will increase donations over and above present tactics. However, research has not yet examined the persuasive consequences VR may provide over more traditional channels. This research seeks to understand the opportunities and limitations this emerging tactic can offer marketers. Specifically, we examine the donation effectiveness of three real VR charitable appeals by assessing actual donation behaviors, and find that VR appeals increase donations compared to a two-dimensional (2D) format. This work addresses a timely and relevant issue for practitioners and opens doors to future research investigating VR’s applications to marketing.