Optimality and efficiency of incomplete split-block designs

In this paper, a balanced incomplete split-block design (BISBD) is shown to be universally optimum for the estimation of the interaction effects with respect to each of the intra-plot stratum estimation and the GLSE. Furthermore, the efficiency factor of an optimal design is investigated.     

Evolving headquarters‐subsidiary dynamics in international R&D: the case of Japanese multinationals

The paper identifies the evolving nature of headquarters‐subsidiary relations during the whole process of R&D internationalization. In‐depth data on five Japanese multinationals revealed that the role of overseas laboratories actually evolved over time, from the 'starter' to the 'innovator' and then to the 'contributor'. Such a shift in role of overseas laboratories affected the nature of headquarters‐subsidiary relationship accordingly. 'Semi‐connected freedom' was identified as an optimal condition for the overseas laboratories to reconcile the two competing pressures: need for local autonomy and need for internal information connectivity. Various managerial steps were suggested for the laboratories to reach that state: increase in process linkage, active broker's role, short‐term socialization, and project‐level socialization. Some practical and theoretical implications were drawn from this research, and future research direction was suggested.     

International mixed duopoly and strategic commitments

This paper examines an international mixed model in which a social-welfare-maximizing domestic public firm competes against a profit-maximizing foreign private firm. First, the public firm can adopt either a lifetime employment contract or a wage-rise contract as strategic commitments. Second, the foreign private firm decides whether or not to enter the market. Third, if the foreign private firm enters, each firm independently chooses its actual output, while if the foreign private firm does not enter, the public firm acts as a monopolist. The paper shows the equilibrium of the international mixed model.

The regulations for indoor air pollution in Japan: a public health perspective

In recent years public health problems caused by indoor air pollution, known as ‘Sick Building Syndrome in housing’, or ‘Sick House Syndrome’ in Japan, have been drawing strong public concern. After conducting extensive exposure assessment, government authorities have taken effective measures to solve the problem. However, as a result of diversification and increase in quantities of industrial chemicals, existing regulations do not cover enough ranges of various potential hazardous chemicals. Hence, the regulations seek to be changed from hazard‐based regulation to a risk‐based one. Good indoor air quality (IAQ), which does not pose unacceptable health risks from all pollutants affecting indoor air, should be ensured for all public people. The objective of this study is to clarify the remaining issues to be solved urgently, related to the regulations to ensure a good IAQ. We reviewed enormous numbers of the existing governmental and industrial voluntary standards and/or guidelines, literature and documents concerning IAQ research in the past 40 years. Our results showed six subjects from those remaining issues. Based on these subjects we created a new scheme to control the IAQ; we especially regarded a comprehensive labeling system as one of the important strategies.     

Third-Degree Price Discrimination in the Presence of Asymmetric Consumption Externalities

In this paper, we consider third-degree price discrimination in two markets in the presence of asymmetric consumption externalities; we establish that under plausible conditions, a firm reduces its price in the market with low price elasticity of demand. The firm can increase its profits by reducing the price for these consumers and enlarging the demand for other consumers, provided that positive consumption externalities exist. Moreover, we show that third-degree price discrimination enhances not only the firm’s profit but also total consumer surplus.

Rules of Origin and Strategic Choice of Compliance

This paper examines how an input supplier’s monopoly power affects exporters’ choice between compliance and noncompliance with rules of origin (ROO) in a free trade area (FTA). When the regional input supplier has monopoly power, the number of compliers largely affects the input price. This is because to meet ROO, exporters must use a certain ratio of the input originated within the area. In such a case, each exporter has an incentive to choose noncompliance with ROO if the rival exporter complies. Because this incentive yields strategic substitution between symmetric exporters, the coexistence of the complier and the non-complier appears in equilibrium. Our model consists of three final-good producers (one in an importing country and two in an exporting country) and one input supplier, which is in the importing country and has monopoly power. We show that within the range of parameter values for which some exporters comply with ROO, the content rate affects the output of the final-good producer in the importing country and the country’s welfare in a U-shaped fashion. The content rate levels that allow the coexistence of the complier and the non-complier minimize welfare.     

Sorption of polycyclic aromatic hydrocarbons into liposomes (artificial cell membranes) and the effects of dissolved natural organic matter

Dissolved natural organic matter (NOM) occurs widely in the aquatic environment and affects the fate of microorganic pollutants (e.g. intake, accumulation, movement, degradation, toxicity). The effect of NOM on the intake into biota (living cells) is very important. In the present study, the effects of coexisting NOM on the intake of microorganic pollutants into aquatic biota were experimentally evaluated. The NOM was concentrated from Lake Biwa water using a reverse osmosis filtration membrane. Two polycyclic aromatic hydrocarbons (PAH; pyrene and phenanthrene) were used as representative microorganic pollutants. Liposomes were synthesized in the laboratory to simulate living cell membranes and were used to investigate the intake of microorganic pollutants into aquatic biota. The experimental results (PAH onto NOM, NOM into liposomes, and PAH into liposomes) indicated that the sorption of PAH into liposomes was suppressed, apparently by PAH binding with NOM in the aqueous phase. This suggests that the accumulation and/or toxicity of microorganic pollutants can be retarded by NOM in the aqueous environment. Moreover, the experimental results indicated that sorption into liposomes (the liposome/water sorption coefficient, K_lipw) could be a better parameter for estimating the intake of microorganic pollutants into aquatic biota than the n-octanol/water partition coefficient (K_ow) in the aqueous environment.     

Clinical and economic impact of rivaroxaban on the burden of atrial fibrillation: The case study of Japan

Objectives: Atrial fibrillation (AF) affects an estimated 1.5 million individuals in Japan, increasing their stroke risk and imposing considerable costs on the Japanese healthcare system. To reduce stroke incidence, guidelines recommend using anticoagulants in moderate-to-high risk non-valvular AF (NVAF) patients; however, many patients receive no treatment, aspirin only, or remain poorly-controlled on vitamin K antagonists (VKAs) due to high VKA discontinuation rates and non-adherence to guidelines. A prevalence-based Markov model was developed to estimate the clinical and budgetary impact of treating these patients with Xarelto^TM (rivaroxaban, Bayer AG) in Japan.

Methods: Population, baseline risk of events, and associated management costs were estimated using data from Japanese publications where available. Treatment efficacy and safety were derived from published data and the J-ROCKET AF trial. Drug and physician visit costs were based on data from the Ministry of Health, Labor, and Welfare, the J-ROCKET AF trial, and Japanese clinical guidelines.

Results: This model demonstrates that increased use of rivaroxaban in inadequately-managed NVAF patients could avoid 456 081 non-fatal ischemic strokes (IS) and 76 975 cardiovascular deaths over 10 years in Japan. This clinical benefit offsets the increased incidence of myocardial infarctions and anticoagulant-related bleeding. Decreased event costs could lead to a ¥188.4 billion decrease in net spending over the analysis time horizon.

Conclusions: Introducing rivaroxaban may decrease the burden of NVAF in Japanese society. From a clinical perspective, the reduction in IS and embolic events outweighs the increased risk of anticoagulant-related bleeding; from an economic perspective, reduced event costs offset drug and physician visit costs, resulting in cost savings.     

Strategic commitment and Cournot competition with labor-managed and profit-maximizing firms

This paper examines the behavior of a labor-managed income-per-member-maximizing firm and a profit-maximizing firm in a quantity-setting model with a strategic commitment. First, each firm independently decides whether or not to make a commitment to capacity. This capacity may subsequently be increased, but cannot be decreased. Hence, each firm’s investment choice changes its capital cost from a variable one into a fixed one. Second, each firm independently chooses its actual output. The paper examines the equilibrium of the quantity-setting mixed model and shows whether or not capacity investment is effective for the labor-managed firm and the profit-maximizing firm.     

THE GROWTH AFTERMATH OF NATURAL DISASTERS

This paper traces the yearly response of gross domestic product growth—both aggregated and disaggregated into its agricultural and non‐agricultural components—to four types of natural disasters: droughts, floods, earthquakes, and storms. The paper uses a methodological approach based on pooling the experiences of various countries over time. It consists of vector autoregressions in the presence of endogenous variables and exogenous shocks (VARX), applied to a panel of cross‐country and time series data. The analysis finds heterogeneous effects on a variety of dimensions. First, the effects of natural disasters are stronger on developing than on advanced countries. Second, not all natural disasters are alike in terms of the growth response they induce, and some can even have positive effects on economic growth. Third, severe disasters often carry much worse effects than moderate effects do. Fourth, the timing of the growth response varies with both the type of natural disaster and the sector of economic activity. Copyright © 2011 John Wiley & Sons, Ltd.