Office triage and the physician's supply curve

This paper contains a theoretical and empirical model of the physician firm. The utility maximizing physician chooses the number of hours of labor to supply and the mix between patient visits and time per visit. Theory suggests that a serious specification error may occur if one estimates the labor supply curve and patient demand curve without simultaneously estimating the mix between patient visits and time per visit. A Chi-Square specification test reveals that this “triage” model statistically dominates the simple supply/demand model. Estimation results indicate relevant backward-bending labor and negatively sloped service supply functions.     

The purchase of components: Functional areas of influence

The Webster and Wind model of organizational buyer behavior enjoys considerable popularity. However, not all of its constructs and relationships among constructs have been validated by empirical research. The purpose of this study was to provide empirical evidence concerning the relationships between three of the model's critical constructs: buying center membership, purchase situation, and purchase phase. The relationships studied were variations in the perceived relative influence of different functional areas (e.g., production, marketing, purchasing, etc.) across three purchase situations and four purchase phases. The results of the study clearly indicate that the functional areas are generally perceived to have varying amounts of influence across both the purchase situation and purchase phase. These results have specific implications for developing effective industrial marketing strategies.     

TRADING OF NASDAQ STOCKS ON THE CHICAGO STOCK EXCHANGE

We use a linear programming model to form two portfolios with approximately equal levels of attributes such as financial leverage. One portfolio comprises stocks that trade exclusively on NASDAQ and the other, stocks that trade on both the Chicago Stock Exchange (CSE) and NASDAQ (CSE/NASDAQ). We find that spreads are lower for the CSE/NASDAQ portfolio, but so is the percentage of quotes at spreads of $0.125. In fact, the lower spreads observed for the CSE/NASDAQ portfolio arise from fewer quotes with spreads of more than $0.25.     

Improving fuel utilization in steel mill operations using linear programming

This paper describes the use of linear programming to improve the fuel utilisation at a major Midwestern steel mill. In particular, linear programming is used to determine an efficient fuel allocation plan for this steel mill, which reduces the total fuel costs for the steel mill operations. The efficient fuel allocation plan that is developed utilises two externally purchased fuels: natural gas and fuel oil, and two gases: blast furnace gas and coke plant gas, which are internally generated as natural by-products of the production process. Test results from the application of the linear programming model are presented and discussed, and indicate that considerable cost savings can be achieved by utilizing a fuel allocation plan which more effectively utilizes the by-product gases which are produced within the steel making process.     

On testing separability restrictions with flexible functional forms

In this paper, we examine the implications of imposing separability on the translog and three other flexible forms. Our results imply that the Berndt-Christensen ‘nonlinear’ test for weak separability tests not only for weak separability, but also imposes a restrictive structure on the macro and micro functions for all currently known ‘flexible’ functional forms. For example, testing for weak separability using the translog as an exact form is in fact equivalent to testing for a hybrid of strong (additive) separability and homothetic weak separability with Cobb-Douglas aggregator functions. Our results show that these ‘flexible’ functional forms are ‘separability-inflexible’. That is, they are not capable of providing a second-order approximation to an arbitrary weakly separable function in any neighbourhood of a given point.     

Environmental color,consumer feelings,and purchase likelihood

This study tested the effects of red and blue in a shopping-related context. Red and blue were selected because of their opposite color properties. Prior color research has shown that red is perceived as negative and tense as well as physically arousing. Blue, on the other hand, has been identified as calm, cool, and positive. Two laboratory experiments were conducted. In both experiments, retail environments were simulated using predominately red or blue colors. Both experiments corroborate the differential effects of red and blue that prior research suggested. Specifically, more positive retail outcomes occurred in blue rather than red environments. More simulated purchases, fewer purchase postponements, and a stronger inclination to shop and browse were found in blue retail environments. The second experiment helps to identify a plausible explanation to color effects. The results indicate that the affective perception of color rather than the arousal dimension of color may be responsible for the outcome. The positive effects of blue and the negative perception of red may have influenced the results. © 1992 John Wiley & Sons, Inc.