Entry limiting agreements: First‐mover advantage,authorized generics,and pay‐for‐delay deals

During patent litigation, pay‐for‐delay (P4D) deals involve a payment from a patent holder of a branded drug to a generic drug manufacturer to delay entry and withdraw the patent challenge. In return for staying out of the market, the generic firm receives a payment, and/or an authorized licensed entry at a later date, but before the patent expiration. We examine why such deals are stable when there are multiple potential entrants. We combine the first‐mover advantage for the first generic with the ability of the branded manufacturer to launch an authorized generic (AG) to show when P4D deals are an equilibrium outcome. We further show that limiting a branded firm's ability to launch an AG before entry by a successful challenger will deter such deals. However, removing exclusivity period for the first generic challenger will not.     

Estimating Real Estate Price Movements for High Frequency Tradable Indexes in a Scarce Data Environment

Indexes of commercial property prices face much scarcer transactions data than housing indexes, yet the advent of tradable derivatives on commercial property places a premium on both high frequency and accuracy of such indexes. The dilemma is that with scarce data a low-frequency return index (such as annual) is necessary to accumulate enough sales data in each period. This paper presents an approach to address this problem using a two-stage frequency conversion procedure, by first estimating lower-frequency indexes staggered in time, and then applying a generalized inverse estimator to convert from lower to higher frequency return series. The two-stage procedure can improve the accuracy of high-frequency indexes in scarce data environments. In this paper the method is demonstrated and analyzed by application to empirical commercial property repeat-sales data.     

Loss Aversion and Anchoring in Commercial Real Estate Pricing: Empirical Evidence and Price Index Implications

Loss aversion behavior plays a major role in the pricing of commercial properties, and it varies both across the type of market participants and across the cycle. We find that sophisticated and more experienced investors are at least as loss averse as their counterparts and that loss aversion operated most strongly during the cycle peak in 2007. We also document a possible anchoring effect of the asking price in influencing buyer valuation and subsequent transaction price. We demonstrate the importance of behavioral phenomena in constructing hedonic price indices, and we find that the impact of loss aversion is attenuated at the aggregate market level. This suggests that the pricing and volume cycle during 2001–2009 was little affected by loss aversion.     

Entry in the ADHD drugs market: Welfare impact of generics and me‐too's

Recent decades have seen a growth in treatments for attention deficit hyperactivity disorder (ADHD) including many branded and generic drugs. In the early 2000's, new drug entry dramatically altered market shares. We estimate a demand system for ADHD drugs and assess the welfare impact of new drugs. We find that entry induced large welfare gains by reducing prices of substitute drugs, and by providing alternative delivery mechanisms for existing molecules. Our results suggest that the success of follow‐on patented drugs may come from unanticipated innovations like delivery mechanisms, a factor ignored by proposals to retard new follow‐on drug approvals.     

Commercial Buildings Capital Consumption and the United States National Accounts

Commercial buildings are a major asset class, over 30 percent of the value of the stock of all produced assets according to the BEA. Yet, US commercial buildings depreciation has not been comprehensively studied since the highly influential work of Hulten and Wykoff almost 40 years ago. This paper's major contributions include: (i) More flexible and precise estimation of the net depreciation value/age profile, allowing much finer characterization of the building life cycle; (ii) Explicit quantification of the land value component of commercial property value, enabling net depreciation to be quantified as a fraction of remaining structure value; (iii) Inclusion of capital improvement expenditures, allowing estimates of “gross depreciation” (total capital consumption); and (iv) Implications of the paper's findings to and for the national accounts.     

Key quality factors affecting users' perception of social networking websites

PurposeThe main aim of the present study is to evaluate the quality factors of websites and their effect on users' perceptions about quality in the context of social networking websites.Design/methodology/approachThis is an applied study conducted as a field survey. A conceptual framework of website quality is proposed and empirically tested that combines quality factors and users' overall perception about quality. Based upon conceptual frameworks in the areas of information systems and using responses from 300 users, a seven factors scale has been validated and data were used to test the conceptual model. To test validity of conceptual framework, confirmatory factor analysis was conducted and regression analysis was performed to examine the suggested hypotheses in the conceptual framework.FindingsIn this study, six different significant factors namely efficiency, entertainment, community drivenness, privacy, user friendliness, efficiency and navigability were identified to be significant for the service quality of social networking websites. Using the survey conducted in the statistical sample, only the factor of web appearance was identified as less important for social networking website users.Practical implicationsFindings from this research provide a set of essential and desired quality factors that social networking website developers can use to improve the quality of existing websites in turn increasing its numbers of users, thus bringing benefits to the company. Second, this study shows how perceived quality has a direct and profound effect on the degree of consumer perception about website quality.Originality/valueThis study, expanding a conceptual model, tries to identify the set of service quality factors for social networking websites. The information of these quality factors as a major predictor of consumers' quality perception provides social networking websites management an initial point for making successful quality management practices for their e-commerce.