direct estimation of synergy a new approach to the diversity performance debate this study examines the linkages between relatedness and synergy in the context of diversification among u s pharmaceutical firms for the period 1960 1980 rather than assume as in the entropy herfindahl and concentric indices of diversification that the levels of synergy generated by different related combinations of business units are identical we estimate synergy directly using a modified version of the concentric index in addition to estimating synergy using capital market performance of the firm as a whole we examine the effects of nondrug diversification on the innovative productivity of firms pharmaceutical divisions alone our two main findings are that production relatedness such as that between drugs and chemicals in fact did not imply synergy over the period of our study and that the patterns of synergy for different types of relatedness shifted over time with the industry life cycle

delivering energy efficiency and carbon reduction schemes in england lessons from green deal pioneer places against a background of growing international and national carbon reduction legislation the uk government introduced the green deal to deliver a significant increase in housing energy efficiency and reduction in carbon emissions this paper reflects on one english local authority s experience delivering a programme intended to foster local interest in the green deal drawing on social surveys and pre and post green deal intervention interviews with five demonstrator homes households that applied to receive a green deal package fully funded by the scheme providing a test bed for the green deal recruitment and installation process this paper shows that awareness and understanding of the green deal scheme is low there is opposition to the cost of finance offered but a strong interest in improving household warmth and for funding improvements through payments added to the electricity bill demonstrator home residents perceived green deals had improved the warmth and quality of their home but saving money was the primary motivator for their involvement not increasing warmth whilst green deal has not delivered the level of success that was hoped much can be learned from the scheme to improve future energy efficiency schemes that will be necessary to deliver emission reduction commitments

the structure of energy efficiency investment in the uk households and its average monetary and environmental savings abstract socioeconomic and behavioural variables that influence the household s adoption of energy efficiency measures such as cavity and loft insulation and upgrades to the boiler are identified contrary to previous literature by extending brechling and smith s 1994 and hassett and metcalf s 1995 models it is shown that the application of the energy act 2011 which contains provisions on the green deal the new energy company obligation eco and the private rented sector needs to follow a tailored strategy to reach the low adoption households identified by my model moreover for the current adopters of the analysed measures average monetary and environmental adoption benefits are estimated based on parti and parti s 1980 demand model these estimates are smaller than their expected values showing an important energy efficiency gap in the sector particularly low cost measures can bring important savings that can help to meet the pay as you save rule i e the golden rule of the new regulation my model also shows that a poor state of dwelling repair can reduce the adoption benefits increasing the need of subsidies that will be financed through consumer s energy bills however this can increase the number of households in fuel poverty

taxes redistribution and the minimum wage a theoretical analysis this paper considers a simple general equilibrium model that contains two types of workers with differing levels of ability and a social welfare maximizing government the paper shows that social welfare can sometimes be increased by supplementing an optimal linear income tax with a minimum wage but that social welfare can never be increased by supplementing an optimal nonlinear income tax with a minimum wage

asymmetric international minimum quality standards and vertical differentiation this paper develops a two country model of a vertically differentiated duopoly that spans two countries which are not integrated without additional costs equilibrium qualities prices profits and consumer s surplus are compared when 1 minimum quality standards are identical and 2 standards differ across countries both markets turn out to be connected by the quality choices of the two firms both firms prices in the two countries and their profits are lower whereas consumer s surplus and the two offered qualities are higher in both countries if no firm is forced out of the country s market with the more demanding minimum quality standard copyright 1995 by blackwell publishing ltd

regulatory environments and the location decision evidence from the early foreign market entries of new technology based firms new technology based firms ntbfs embarking on a strategy of rapid internationalisation choose foreign market entries that minimise transaction costs and the related risks of failure means to reduce the young firms vulnerability to the appropriation of intellectual capital are particularly important influences on early foreign market choices we explore the effect of the institutional dimension specifically the national regulatory environment on the location choices and the speed of internationalisation by british and german ntbfs we provide evidence that entrepreneurial young firms choose to enter country markets offering better regulatory protection for their intellectual property this decision is moderated by a home regulatory regime bias in contrast we observe that the speed of internationalisation is influenced less by the foreign regulatory regime and more by industry and firm characteristics we also observe that managerial experience influences the location choices of ntbfs facing regulatory hazards

the dynamics of technological innovation the sector of antibacterial medicines abstract this is an empirical and historical study of the dynamics of technological innovation in antibacterial medicines a key sector of the pharmaceutical industry it is based on an analysis of all the innovations that were introduced over the period 1935 1987 from prontosil the first sulphonamide through penicillin and the semisynthetic antibiotics to the monobactams and the quinolones of the mid 1980s in the historical section we describe the influence that antibacterial medicines have had on the structure and research intensity of the innovating companies and through them on the pharmaceutical industry and its geography we also describe the catalytic role played by government agencies and universities in the empirical section the innovations are evaluated in terms of originality and market performance and are classified into four technological trajectories their distribution over time and among technological trajectories companies and countries the relation between originality and market performance of individual innovations the interplay between social needs market demand and technological innovation the role of market successful radical innovations in the launching of technological trajectories the orientation of subsequent academic and industrial research and the establishment of corporate technology traditions provide insights in both innovation theory and the dynamics of technological innovation

lessons from the united states s antitrust history abstract the united states s antitrust policy spans more than 100 years for most of its history the united states has had the toughest antitrust laws and enforcement policies of any country in the world a shift to a more permissive attitude with regard to antitrust matters has occurred in recent years however this paper traces the changes in antitrust policy that have occurred and the concurrent shifts in thinking among economists on antitrust questions following this review the paper offers a critical appraisal of both the economic underpinning of the new learnings on antitrust matters and the changes in antitrust policy that have accompanied them it closes with a discussion of the implications of the analysis for european antitrust competition policy

an introduction to the law and economics of intellectual property although economists have written on topics of intellectual property for a long time the impact of economics on public policy in this area has been slight especially as compared to the influence of professional writings in areas such as antitrust and taxation we believe that too few of the profession s resources have been devoted to these issues and that of those resources that have been employed too few have been devoted to empirical analyses we hope that this introductory essay and the three papers that follow will stimulate interest in this subject this introductory essay first describes some of the basic economic tradeoffs involved in intellectual property law and then describes the framework of the law in the six areas described above patent copyright semiconductor protection trademark trade secret and misappropriation it is intended both to provide thumbnail descriptions of the various intellectual property regimes to economists working in this area and to indicate where additional economic research might be useful

intellectual property rights and the governance of international r d partnerships this paper studies the degree to which country differences in intellectual property rights protection affect the choice of companies for a particular mode of international inter firm r d partnering it focuses on the preference of companies for either an equity joint venture or a contractual partnership we find that international differences in intellectual property rights protection are a significant factor with less secure protection firms choose r d joint ventures rather than contractual partnerships the level of technological change in industries has an inverse effect on the preference for international r d joint ventures

pioneers imitators and generics a simulation model of schumpeterian competition a computer simulation model in the tradition of evolutionary models of technical change is developed in this paper it focuses on r d competition in new product introductions and is based on data for the u s pharmaceutical industry during the 1970s the sensitivity of innovation levels to the rate of generic competition regulatory review time and patent life is examined in the computer simulation experiments these factors are found to have significant long run effects on industry structure and innovation levels

present at the biotechnological revolution transformation of technological identity for a large incumbent pharmaceutical firm abstract management of successful incumbent firms experience difficulty in recognizing the need for and effecting change in the firm s technological identity after an externally generated shift in the industry s technological trajectory nonetheless some large pharmaceutical firms have transformed their technological identity in drug discovery from a chemical random screening to biological drug design model we report how one of the world s most successful incumbents transformed technically sophisticated senior management championed the transformation it was achieved primarily through hiring many new scientists embodying biotechnology existing personnel acquired the expertise or left continual self transformation is part of the corporate ethos some differences in incumbent and entrant technology remain incumbents use a wider range of techniques consistent with their complementary assets publication and incentive compensation policies are driven by the need to attract and retain the best scientists professor firm collaborations are ubiquitous often non public and best identified in quantitative analyses by co publishing collaborations with new biotechnology firms are used primarily to substitute for developing internal expertise judged of marginal value no drug discovery collaborations exist with other major incumbents we identify another seven or eight incumbents similarly transforming as indicated by top scientific talent and patenting success

on the role of the production and consumption assumptions for optimum taxation abstract the sensitivity of optimum tax rates to a variety of factors has sustained many different lines of enquiry this paper attempts to demonstrate by computational procedures the role of the production and consumption leisure assumptions in the light of recent research in particular the work of stern will be extended to provide an assessment of the allen analysis it will be shown that optimum negative marginal tax rates are no longer a curiousity and that our production and consumption leisure assumptions are of considerable importance for variable wage tax models

the effects of increased copyright protection an analytic approach previous authors who have considered partially nonexcludable goods have claimed that an increase in copyright protection will have the following two effects on social welfare first it will decrease the social welfare loss due to underproduction second it will increase the social welfare loss due to underutilization in this paper we investigate these claims in a formal setting by analyzing a model in which consumers vary only in terms of their costs of obtaining a reproduction our analysis provides partial support to the first claim of these previous authors while giving little or no support to the second claim

discontinuities and senior management assessing the role of recognition in pharmaceutical firm response to biotechnology despite an increasing emphasis on the role of senior management cognition in shaping organizational action there have been few attempts to link top management mental models to strategic choice in the face of discontinuous innovation this paper uses 23 years of data covering 15 major pharmaceutical firms to explore the degree to which each firm s response to the revolution in biotechnology was shaped by the senior team s recognition of biotechnology s importance controlling for a number of important alternative explanations we show that recognition may be an important predictor of action suggesting that cognition at the most senior level can play a critical role in shaping established firms response to discontinuities copyright 2003 oxford university press

product line expansion and resource cannibalization abstract diversification research argues that new products are more successful when they leverage a firm s intangible resources which may support multiple activities without engendering rivalry for their use however numerous complementary resources may also be needed to exploit a firm s intangibles if these resources are in limited supply or if it takes time to acquire and assimilate additional resource capacity then new products may impose costs on existing products by cannibalizing the services of firm resources our analysis of product introductions within the pharmaceutical industry provides evidence of resource cannibalization and suggests that product market experience helps offset some of these costs

optimal linear income taxation with general equilibrium effects on wages abstract the paper argues that the endogeneity of wages may make a considerable difference to optimal linear tax rates in this case there is not only the usual direct redistribution via the fiscal system but also the general equilibrium redistribution due to the change in wages depending on the elasticity of substitution of the production function and the labour supply elasticities these may be reinforcing or opposing it is shown that the general equilibrium effect may plausibly outweigh the direct effect so that net redistribution to the lower paid involves a wage subsidy financed by a lump sum tax

does stronger patent protection increase export variety evidence from us product level data proponents of global intellectual property rights iprs reforms have argued that developing countries weak iprs limit their access to foreign innovative products and technologies central to our understanding of the effects of iprs on product access is the influence of national differences in patent protection on corporate behavior and business strategy of multinational firms using detailed product data on us exports from 1990 to 2000 this research note assesses the impact of strengthening iprs in developing countries on product variety of us exports colonial origin and cross industry variation in patent effectiveness serve to identify the impact the results show that the strengthening of iprs increased exports of new products in patent sensitive industries the expansion in product variety accounted for the entire increase in us exports the findings substantiate claims that ratification of trips by developing countries promotes access to new foreign products and technologies additionally the results demonstrate that patent protection is a significant institutional factor in us firms business decisions over the introduction of new products and processes into a developing country marketplace

advertising and competition in the ethical pharmaceutical industry the case of antihypertensive drugs abstract this paper uses data on the majority of name brand antihypertensive drugs marketed in the united states during 1988 93 to test the hypothesis that advertising decreases the price elasticity of demand in the pharmaceutical industry this is the first study to directly estimate the effects of drug product promotion on the price elasticity of demand in this industry we find strong evidence of an advertising effect in particular detailing efforts the salient means for product promotion in this industry systematically lower price sensitivity given the inverse relationship between elasticity of demand and price it is likely that consumers pay higher prices as a result of the advertising that occurs in this industry our findings are thus consistent with hurwitz and caves who find evidence that advertising inhibits entry into this market but in contrast to earlier research that found no anticompetitive effect

pricing dynamics in the pharmaceutical industry pricing behaviour has traditionally been approached from the concept of long term static equilibrium this paper argues that this approach is inappropriate at least with respect to the pharmaceutical market because new innovation and patent expiry lead to a continually changing environment a theoretical analysis argues that price change will depend on the age of the therapeutic class the degree of brand loyalty the extent to which it is sold over the counter rather than on prescription and measures of competition the empirical results based on an analysis of the leading twenty five therapeutic class of pharmaceuticals in the usa the uk west germany and france over the period 1981 1988 tends to support the theoretical conclusions although it would appear that government controls in the uk are distorting profit maximizing behaviour more than in the other three countries

strategic pricing of new pharmaceuticals this paper provides empirical evidence on the leading factors affecting the prices of new pharmaceuticals both at introduction and after 4 6 and 8 years most important is the extent of therapeutic advance embodied in a new product for drugs which represent important therapeutic gains launch prices can be two or three times those of existing drugs used for the same purposes while drugs that largely duplicate the actions of currently available products are typically priced at comparable levels in addition the number of branded substitutes has a substantial negative effect on launch prices which reflects the importance of competitive pressures duplicate products thereby play an important economic role in pharmaceutical markets

pricing profits and technological progress in the pharmaceutical industry the decades old debate over pharmaceutical industry prices profits and innovation has again intensified a number of events coalesced to refocus public interest on pharmaceuticals contributing to public concern were bureau of labor statistics price index increases for pharmaceuticals far outpacing those for the products of other industries another prominent characteristic of the pharmaceutical industry has been its extraordinarily high reported profitability this article examines the phenomena that precipitated the current pharmaceuticals debate their historical antecedents and the principal questions at issue in the author s considered judgment a pell mell march toward regulation of pharmaceutical industry pricing could seriously impair the industry s incentives for investment in new products

political influence and regulatory policy the 1984 drug legislation i introduction in the late 1970s and early 1980s dissatisfaction with the length complexity and cost of the drug approval process combined with rising prescription drug prices led to congressional attempts at reform these focused on two issues to compensate the developers of new drugs for the increasing costs and delays associated with fda approval and to increase the availability of generic drugs until 1984 these reform attempts failed i use the structure induced equilibrium sie theory of shepsle and weingast 1981 to examine why regulatory reforms prior to 1984 were stalemated and why the 1984 drug legislation was ultimately enacted my results show that prior to 1984 the preferences of the members of the key congressional committees were such that the proposed bills could not beat the status quo however changes in both membership and turnover on the house subcommittee on health and the environment combined with a change in the majority party in the senate led to a situation in which the 1984 drug legislation could defeat the status quo in both the house and the senate the drug price competition act facilitated the market entry of generic drugs following patent expiration by allowing generic versions of brand name drugs patented after 1962 to use an abbreviated new drug application anda 1 the patent term restoration act extended the patent lives of brand name drugs for up to five years to compensate for patent life lost during the fda approval process initial unsuccessful legislative reforms were introduced into congress in 1978 79 and 1981 82 but no legislative reforms were passed until 1984 these earlier unsuccessful reform efforts raise the following questions first why did the status quo prevail until 1984 as the legislative equilibrium second what endogenous changes occurred to produce the new legislative equilibrium in 1984 while much of the previous literature about the pharmaceutical industry has focused on the efficiency and distributive effects of public policy i focus on the theory of regulatory policy 2 the sequence of legislative actions leading to the 1984 drug legislation shows how competing interest groups representing brand name and generic drug firms forced legislators to face trade offs in accommodating their interests i look most closely at the members of the house and senate committees with jurisdiction over pharmaceutical regulation issues data representing brand name and generic firm or consumer interests are used to construct estimates of legislative preferences ideal points 3 then the sie theory is used to generate predictions about legislative behavior and outcomes to help explain the initial failure of regulatory reform in 1979 and its ultimate success in 1984 the results from the analysis explain both why the status quo prevailed in 1979 and why it was overturned in 1984 the analysis also illustrates how the industry and consumer groups represented on the relevant committees can protect their interests this occurred in both 1979 when the senate passed legislation favorable to the generic drug industry and 1981 when legislation supported by the brand name drug firms was passed in each case representatives of the unfavored interest group were able to block legislation in the house legislation was possible only when the majorities on the house and senate committees could agree on a single policy which could defeat the status quo in both committees moreover this policy provided benefits to both sets of industry interests represented by committee members the paper is organized as follows in sections ii and iii i describe the theory of political outcomes used in this analysis and provide some background on pharmaceutical regulation prior to the reforms the estimation of congressional ideal points is discussed in section iv sections v and vi examine congressional responses to the 1979 drug reforms and interest group activity in the 1980s

the measurement of intellectual property rights protection this research improves upon empirical studies that examine the measurement of intellectual property rights ipr protection prior measures examine only one type of law or lack a component that addresses the actual enforcement of these laws the measure presented here uses three types of ipr laws and enforcement components for them

pricing patent loss and the market for pharmaceuticals dustry the drug price competition and patent term restoration act of 1984 very clearly reflects the determination of policy makers to simultaneously address issues of price control and technical progress the 1984 act increased returns to innovation by extending the period of patent protection to take into account the time between receipt of a patent and food and drug administration fda approval of a drug for sale in the market the 1984 act also reduced the testing requirements for approval of new generic brands of existing chemical entities thus reducing entry barriers in markets where patents have expired the expected outcome from eased entry conditions for generic substitutes was substantially enhanced price competition and lower prices for brand name drugs in fact prices for brand name drugs have tended to increase following entry by generics wagner and duffy 28 examined price changes for top selling generics and name brands they show substantial price increases in brand name prices accompanying large reductions in generic prices as entry of generics occurs grabowski and vernon 9 examined data on 18 major orally administered rug products subject to generic competition between 1983 and 1987 and found that the name brand price increased by an average of 7 one year subsequent to generic entry and 11 two years following generic entry

the optimal public employment policy abstract this paper studies optimal public employment in a model with two types of labor unskilled and skilled and a single consumption good a linear income tax is used to redistribute income it is shown that if the income tax and public employment levels are optimal then there is less unskilled labor and more skilled labor in public production than is necessary to minimize costs at the prevailing gross wage rates the robustness of this result is investigated by examining a second model

the mediating role of social workers in the implementation of regional policies targeting energy poverty abstract this paper aims to provide a socio political reflection of the role played by social workers in regional policies and of the real needs of households affected by energy poverty the paper also examines the impact of technical specialised training on the ability of social workers to prevent and mitigate conditions of household energy poverty in europe the adoption of a research action participation methodological framework and a training research approach has permitted the opinions of social workers to be collected through surveys and their central role in implementing regional policies to be highlighted the conclusions obtained have made possible the construction of a self diagnosis and data collection tool which increases the ability of social workers to mediate and implement urgent mitigation measures for energy poverty finally regional policies which aim to mitigate household energy poverty are examined from the professional perspective of social workers

the relative impact of actual and potential rivalry on firm profitability in the pharmaceutical industry this paper estimates the effects of actual and potential rivalry on profitability of firms in the u s pharmaceutical industry during the 20 year period 1963 82 the results show that during the 1960s actual rivalry among the sampled firms did not materially affect firm profitability but that during the 1970s competition among incumbents had an increasingly adverse effect on their profitability the results also show that potential competition significantly reduced drug firms profitability during the entire 20 year period copyright 1999 john wiley sons ltd

income taxation endogenous factor prices and production efficiency in an analysis of a two type income tax model with endogenous wages this paper shows that production efficiency is violated in the optimum with i non linear and ii linear income taxation if and only if a distortionary tax schedule is implemented these findings complement earlier results of the literature in passing it is also shown that optima with non linear redistributive income taxation cannot be identified with the redistributive regime if the assumption of endogenous wages is taken seriously

can the green deal be fair too exploring new possibilities for alleviating fuel poverty abstract energy efficiency and social programmes have failed to stem the dramatic increase in the number of fuel poor households in recent years as the 2016 deadline for eradicating fuel poverty nears energy efficiency and fuel poverty programmes are undergoing significant changes the ambitions for britain s green deal the overhaul of supplier obligations alongside the winding down of warm front and the introduction of an incentive for renewable heat combine to form a sea change in how energy efficiency and fuel poverty objectives are financed and delivered green deal finance gdf eliminates the up front capital cost of energy efficiency measures to the household by linking repayments to energy savings and spreading them over many years this paper asks whether and how gdf could be beneficial to fuel poor households using scenarios modelled on the english house condition survey it explores the extent to which fuel poverty could be reduced allowing for repayments incurred by gdf it examines how much further fuel poverty could be alleviated were the capital cost subsidised or repayments supported and concludes that a flexible design for gdf is necessary if it is to contribute to alleviating fuel poverty

the dynamics of technological innovation the case of the pharmaceutical industry abstract this paper examines the mechanisms and dynamics of the process of innovation in companies and sectors of the chemical industry it is based on analysis of science and technology output indicators namely patents and innovations evaluated in terms of originality and in the case of innovations in terms of market success as well radical innovation ri is identified as the kingpin for the evolution of technologies in both the micro and macro economic context not only because it provides a model for imitation but also because it turns out to be more profitable for the innovating companies than incremental innovation at the micro economic level this paper examines the significance of diverse driving forces which lead a company to the launching of projects aiming at ri measures the length of commitment to such projects and describes the dynamic effects generated by the introduction of a successful ri and how they affect the company s subsequent r d and market orientation at the macro economic level this paper identifies the stages of youth growth maturity and decline of the subsectors of the chemical industry examines the distribution of ri and market successful innovations over the development of a sector describes the influence of market demand and capital investment on technological advance and compares the development of national chemical industries the paper concludes with an account of the dynamics of technological innovation in the chemical industry over the period 1930 1985 which is based on the empirical findings of the previous sections

the optimal organization of research evidence from eight case studies of pharmaceutical firms abstract in this paper we examine the results of interviews of scientists and executives in eight pharmaceutical companies on the issue of how best to organize the rd when the firm is playing catch up in an area of science where it is weak and when governmental policies force firms to carry out r d in particular locations

generic entry price competition and market segmentation in the prescription drug market abstract this paper studies the effects of generic entry on post patent price competition for 18 prescription drugs recently exposed to competition an independent validating test of the generic competition paradox is conducted using a newly created data set each generic entrant is associated with an average 1 increase in the branded price the one way error component model accounts for intermolecular competition market segmentation and endogeneity of entry and finds branded prices increasing by 2 alternative definitions of entry suggest that price competition is confined to the generic market the unique payer type feature of the data offers empirical evidence supporting market segmentation

energy poor or fuel poor what are the differences abstract energy poverty and fuel poverty are descriptors of problems of households energy consumption they are both distinct problems and have been addressed by many researchers organizations and governments cross use of the terms of energy poverty and fuel poverty in published papers is common as an accurate descriptor is the presupposition of research and policy development especially for those who just started to pay attention to this issue this paper compares the definitions research priorities status quo and problems of these two concepts and summarizes the relationship between them the paper suggests that only when the research targets are households who are living in a cold climate and have difficulty in getting access to electricity or modern cooking facilities and in supplying indoor heating with appropriate cost the concepts of energy poverty and fuel poverty have the chance to be broadened and mutually integrated

products liability and prescription drug prices in canada and the united states this article provides the first estimate of the degree to which product liability costs in this country contribute to the observed differences in pharmaceutical prices between the united states and canada measures of liability risk show up as large and strongly significant explanatory variables in regressions of u s and canadian price differences in the sample used here accounting for liability effects reduces the mean of the predicted price difference distribution by about one half and the median by about one third these reductions come about by virtually eliminating the upper tail of the distribution though liability effects cannot account for all the observed price differences in this sample they clearly must play a role efforts to explain international price differences in drug products which do not take account of the effects of differing legal systems are missing an important effect and suffer from a substantial omitted variable bias

managing the energy trilemma the case of indonesia abstract this article argues that a central challenge for energy governance is how to manage a complex energy trilemma involving the sometimes competing demands of energy security climate change mitigation and particularly in developing countries energy poverty it suggests that tensions between the horns of the trilemma in large part explain indonesia s current profoundly suboptimal energy policy while these tensions are not inherently incapable of resolution such resolution would require good governance at both state and global levels the possibilities for and obstacles confronting such governance are explored and provisional solutions canvassed

international joint venture partner selection the role of the host country legal environment this study attempts to enhance our understanding of how a host country s legal environment influences international joint venture ijv partner selection criteria empirical results based on survey data collected on 169 ijvs revealed that host country rule of law perceptions negatively influence appropriation and coordination cost concerns which positively influence partner related criteria furthermore these concerns mediate the relationship between perceptions of host country rule of law and partner related criteria

copying and indirect appropriability photocopying of journals creators and owners of intellectual properties are alarmed by the growth of technologies that ease the tasks of copying these properties this paper however shows that the unauthorized copying of intellectual properties need not be harmful and actually may be beneficial the empirical impact of photocopying on publishers of journals is examined in an attempt to discover if publishers can indirectly appropriate revenues from users who are not original purchasers the evidence indicates that publishers can indirectly appropriate revenues from users who do not directly purchase journals and that photocopying has not harmed journal publishers 18 references 1 table

the policy implications of energy poverty indicators abstract the methodologies and indicators that have been proposed in the literature to measure energy poverty are quite diverse some are subjective approaches based on personal or third parties perceptions of affordable warmth at home whereas others calculate objective indicators although these different proposals have already been theoretically compared an empirical comparative analysis that measures in a real case study the practical impact of the theoretical limitations detected for the different indicators was still pending the goal of this paper is thus to contribute to this debate by comparing critically the different approaches used to measure energy poverty in a real case spain in 2015 and to propose a new methodology that might be able to overcome some of the major problems that affect current methods

how broad should the scope of patent protection be i explore the trade off between a patent s length that is its lifetime and its width that is its scope of coverage a wider patent generally reduces the distortion of consumers choices between the patented brand of the product and unpatented lower priced varieties sold by competitors but also permits higher prices which increase relative to profits the deadweight losses from consumers switching consumption out of the product class i show under what conditions infinitely lived but very narrowly focused patents are the socially efficient way to reward innovation and under what conditions very short lived but very broad patents are optimal

the tylenol incident ensuing regulation and stock prices the much publicized tylenol incident in 1982 led to stringent packaging regulations for over the counter pharmaceutical drugs the sudden incident and the swift progression of associated events offer a unique opportunity to assess the wealth effects of the resultant regulations the market value of common stock of johnson johnson makers of tylenol declined by approximately 29 percent amounting to 2 31 billion although other firms in the industry also suffered significantly their share price decline did not occur around the tylenol incident but occurred around the subsequent packaging reg ulation proceedings on average 28 other pharmaceutical firms analyzed in this study experienced a decline of 310 million per firm or a total of about 8 68 billion the results suggest that the regulation had a significant negative effect on the common stock prices of firms in the pharmaceutical industry

estimating the impact of the r d tax credit on strategic groups in the pharmaceutical industry abstract the economic recovery and tax act of 1981 provided a 25 percent tax credit for increases in research and experimentation expenditures previous studies have shown considerable controversy about the effectiveness of various tax credits this study focuses on the response of the strategic groups in the pharmaceutical industry to the credit four strategic groups were formed using different levels of research intensity research sales and relative cash flow margin cash flow sales the change in research intensity following enactment of the tax credit was estimated the analysis found that the tax credit caused an increase in r d expenditures in addition the r d tax credit appears to have contributed to increased competitive r d spending among the firms in the pharmaceutical industry

product innovation product market competition and persistent profitability in the u s pharmaceutical industry increasingly strategy scholars are exploring the relationships between innovation competition and the persistence of superior profits sustained high profitability may result when a firm repeatedly introduces valuable innovations that service previously unmet consumer demands while the returns to the firm from each innovation may erode over time innovation ensures that overall the firm maintains a high performance position at the same time sustained high profitability may also accrue to firms that innovate less often but effectively avoid the competition that otherwise erodes high returns this paper elaborates these relationships before presenting an empirical analysis of the effects of differential innovative propensities and differential rates of competition on pharmaceutical firms abilities to sustain profit outcomes that are above those earned by competing firms the analysis which is situated within the u s pharmaceutical industry finds support for the expected relationship between high innovative propensity and sustained superior profitability but no support for a link between persistence and the ability to avoid competition copyright 1999 john wiley sons ltd

practical implications of game theoretic models of r and d the purpose of this paper is to survey recent game theoretic models of research and development and to ask whether they yield practical implications or testable hypotheses the papers i will be discussing have been written or published within the past five years they have a good deal in common relying upon similar assumptions and building upon each other because of this the literature surveyed here may seem narrow and some relevant work has probably been inadvertently omitted i apologize for these omissions for want of space i will not discuss the normative conclusions of this literature

the regional distribution of public employment theory and evidence abstractthe regional distribution of public employment theory and evidence regional studies this article analyzes the optimal regional pattern of public employment in an information constrained second best redistribution policy it shows that regionally differentiated public employment can serve as an expenditure side tagging device bypassing or relaxing the equity efficiency trade off the optimal pattern exhibits higher levels of public employment in low productivity regions and is more pronounced the higher is the degree of regional inequality empirically using a panel of european regions from 1995 to 2007 the analysis finds evidence that public employment is systematically higher in low productivity regions the latter effect is stronger in countries with higher levels of regional inequality

the political economy of the pharmaceutical industry e conomicsis a practical science since its inception as an independent discipline it has probed the major policy issues of the day the topics that aroused the interests of its practitioners have generally been those that presented government officials with critical choices the modern literature on the economics of the pharmaceutical industry is no exception this body of material originated with the investigations of the kefauver committee in late 1959 public interest was aroused by the spectacle of confrontation between committee and industry the record made by this committee and its successors grew to tens of thousands of pages as claims and counterclaims were offered regarding industry conduct and performance the primary line of attack concerned pharmaceutical prices and profits the committee demonstrated that prices generally exceeded direct costs of manufacturing for 22 major pharmaceutical firms in 1958 costs of goods sold were merely 32 percent of total sales u s senate report 1961 p 31 the committee argued that this fact alone demonstrated the presence of monopoly power while the substantial difference between revenues and production costs permitted high expenditures on research and development it also paid for even higher selling outlays moreover reported rates of return after taxes during this period on the order of 21 to 22 percent exceeded twice the average for all manufacturing the industry replied that on the contrary prices were low relative to the value afforded consumers and high returns on successful products were required to balance the losses from the large numbers of unsuccessful ones the relevant concept of marginal costs according to the industry position must include the costs of developing and marketing new products and therefore prices were not excessive at all although it admitted earning substantial profits the industry argued that without these returns research outlays would be limited and the number of new drugs reduced the committee countered that little of social value arose from industry research molecules were manipulated and the new drugs that resulted were therapeutically similar to those already on the market indeed it suggested that much