Technology Choice and Saving in the Presence of a Fixed Adoption Cost

This paper explores the relationship between technology choice and saving in the presence of fixed costs of technology adoption. While richer agents adopt the more productive technology immediately it is available, poorer agents optimally choose to wait before switching to the better technology. In the interim, they save more than others and more than in the absence of the prospect of switching to the new technology. The paper thus provides an explanation for the phenomenon that the saving rate and the growth rate of output increase over time in the transition.     

A situational analysis of how barriers to systemic failure are undermined during accident sequences

The concept of barriers to accident sequences is an important one in reasoning about the ways in which risks in a system can be reduced to acceptable levels. An attempt was made to characterize the phenomena that, in practice, undermine such barriers. This involved an analysis of 50 accident reports from the hydrocarbons drilling industry. The analysis characterized the barriers that had failed in terms of their source and effect, and it identified what had undermined them – concentrating on aspects of the situation, rather than the dispositions of the people involved in the accidents. These undermining phenomena varied widely, but in general there was some element that made them intrinsically difficult for designers of systems to discern: for example, the indirectness of causal paths in which some aspect of the design induced some behaviour on the part of an operator, which then created some condition that circumvented the action of a barrier. In a few cases it was the barrier itself that lay at the start of this causal path, making the barrier essentially self-limiting. A simple planning tool was developed to exploit this analysis by helping system designers reason about the ways in which the barriers they incorporate are vulnerable to being defeated.     

The Effects of Humor on Ad Processing: Mediating Role of Brand Familiarity

The effect of humorous advertisement on memory and attitude has been an important topic among advertising scholars. However, scholars have used fake brands to test the effects of humor. Since the possibility for consumers to be exposed to the commercial for a completely new brand is very low, using a fake brand to test humor effects is not realistic. Hence, this study examined the role of brand familiarity on the effects of humor on memory and attitude by using existing brands in a laboratory experiment. This study suggests a different structural model for familiar and unfamiliar brands based on the previous studies in consumer behavior. Results revealed different effects of humorous advertisements for the familiar or unfamiliar brands. The structural model proposed for this study revealed a mediating role of brand familiarity on humor effects. Humorous ads worked better for the unfamiliar brands. For the familiar brands, the effects were mediated by the subjects’ brand familiarity and prior brand attitude.     

Location strategies for agglomeration economies

Because agglomeration economies may create competitive advantage and each location has a unique array of agglomeration economies, where should firms locate? We combine fundamental economic and strategy concepts to: (1) determine when firms must locate proximately to access factor pools; (2) show that factor pools controlled by fewer firms are less useful to new entrants; and (3) demonstrate that certain firms risk aiding competitors when contributing to efficient factor pools. We find support for our predictions with a test on new U.S. manufacturing entrants from 1985 to 1994, using an empirical specification that separates agglomeration levels from agglomeration economies. Copyright © 2013 John Wiley & Sons, Ltd.     

Time diversification: Definitions and some closed-form solutions

We establish general conditions under which younger investors should invest a larger proportion of their wealth in risky assets than older ones. In the finite horizon dynamic setting, we show that such phenomenon, known as ‘‘time diversification,” can occur in the presence of human wealth, guaranteed consumption, or mean-reverting stock returns. We formalize two alternative notions of time diversification commonly confounded in the literature. Analytic solutions are provided for both time-series and cross-sectional forms of time diversification. To our best knowledge, this paper is the first to solve in closed-form the hedging demand for a CARA investor with inter-temporal consumption and a finite horizon, facing mean-reverting expected returns. Our results indicate that horizon can have a significant effect on the portfolio demand of a CARA investor due to inter-temporal hedging.     

Information format‐option characteristics compatibility and the compromise effect

When consumers make a decision under preference uncertainty, they often select the compromise choice. Since the compromise effect of the middle option stems from the relational properties of the choice alternatives, an information format compatible with their characteristics makes the middle option more salient and attractive. Focusing on three studies, this article demonstrates that the middle option is (1) more attractive when presented in the middle position; (2) more attractive when information is presented jointly rather than separately; and (3) most attractive when presented in an information display board format, less attractive in a list by attribute condition, and least attractive in a list by alternative condition. These findings imply that information processing strategies and information format‐option characteristics compatibility work in tandem. These three studies thereby show that the information format‐option characteristics compatibility effect is robust and that such compatibility effect is not due to different information processing strategies, which makes these results meaningful for marketing practice. © 2008 Wiley Periodicals, Inc.     

Passive blockholders,informational efficiency of prices,and firm value

This paper analyzes the role of passive blockholders in corporate governance using data on Schedule 13G filings. We show that firm value increases with the number and aggregate ownership of passive blockholders after controlling for other possible determinants of firm value. More importantly, we show that the informational efficiency of prices (IEP) increases with the number and aggregate ownership of passive blockholders, and IEP is a channel through which passive blockholders affect firm value. Overall, our results suggest that managers perform better when stock prices reflect the economic consequences of their actions promptly and accurately through information‐based trading of blockholders.     

Los efectos de la capacidad en el rendimiento de la sobrecalificación y la infracalificación en Malasia

El número de trabajadores con estudios superiores crece en mayor medida que el empleo calificado en Malasia. Se plantea la cuestión de hasta qué punto la acumulación de competencias, capacidades y experiencia laboral mejora la prima salarial de la sobrecalificación o atenúa la penalización salarial de la infracalificación. Los autores estiman los efectos de la capacidad sobre el rendimiento de la calificación según datos recopilados en Malasia peninsular en 2015. Concluyen que la mejora de tipos específicos de capacidad puede rectificar las deficiencias salariales resultantes de los desajustes. La educación y la formación en el empleo deben orientarse al desarrollo de recursos humanos con capacidades laborales específicas.     

Real-world evidence of improved healthcare utilization in patients with schizophrenia or schizoaffective disorder after early treatment of paliperidone palmitate once-monthly treatment in Hong Kong

Background: Very few data are available to demonstrate the economic benefit of early paliperidone palmitate once-monthly long-acting injectable (PP1M) treatment in patients with schizophrenia or schizoaffective disorder.

Methods and materials: This study has retrospectively compared the healthcare utilization and associated costs of pre- and post-PPIM treatment in 413 patients with schizophrenia or schizoaffective disorder recruited from three major public hospitals providing psychiatric services in Hong Kong. Patients were categorized into early treatment (≤3 years since diagnosis) and chronic (>3 years) groups, and also whether they were receiving polypharmacy (POP).

Results: It was found that patients who were started on early therapy with no POP had the most favourable outcomes. Overall results of the entire cohort, including both early and late treatments, indicate that there was a slight increase in annual in-patient days (IP) per patient and outpatient visit (OP) by 3.18 and 1.87, respectively, and a decrease in emergency room visit (ER) of 0.9 (p?p?p?p?Conclusions: From the 413 patients studied, potential annual savings is higher by early administration of PPIM in patients with NP. Analysis using multivariate linear regression based on generalized estimating equations and sensitivity analysis using a linear mixed model supported the findings.