I examine interfirm cooperation between incumbents and new entrants as a mechanism for incumbents to adapt to radical technological change through exploitation of complementary assets. The research setting is the biopharmaceutical industry, where I analyze 889 strategic alliances between 32 large pharmaceutical firms and providers of the new biotechnology. I find that incumbents that focus thei...

The measurement of the volume of information is fraught with difficulties. However, trends in availability and usage can be very revealing, as is shown by some examples. This paper argues that considerations of the volume of information should not be divorced from those of the value of information. In communications, informative comparisons appear to be possible by classifying technologies in j...

We formulate a model of reference-dependent preferences based on the marginal rate of substitution at the reference-point of a reference-free utility function. Using binary choices on the trade-off between money and travel time, reference-dependence is captured by value functions that are centered at the reference. The model predicts a directly testable relationship among four commonly used val...

Abstract We applied discrete choice contingent valuation to the amenities consumed by non-industrial private forest owners in Andalusia (Spain) a survey of 765 landowners. The landowners’ median willingness accept compensation from an alternative investment for giving up land amenity consumption is EUR 387.8 per hectare yearly. preferred model shows diminishing marginal values with property siz...

Abstract We investigate the marginal value of information in context health signals that people receive after checkups. Although underlying status is similar for individuals just below and above a clinical threshold, treatments differ according to checkup they receive. For general population, whereas warnings about diabetes increase healthcare utilization, outcomes do not improve. However, amon...

We design and conduct a stated-preference survey to estimate willingness to pay (WTP) to reduce foodborne risk of acute illness and to test whether WTP is proportional to the corresponding gain in expected quality-adjusted life years (QALYs). If QALYs measure utility for health, then economic theory requires WTP to be nearly proportional to changes in both health quality and duration of illness...

Many philosophers think that we should use a lottery to decide who gets good which two persons have an equal claim but only one person can get. Some save identified from harm even at the expense of saving somewhat greater number statistical same harm. I defend principled way justifying both judgements, namely, by appealing decreasing marginal moral value survival chances. identify four desidera...

For-profit hospitals in California contract out services much more intensely than either private nonprofit or public hospitals. To explain why, we build a model in which the outsourcing decision is a trade-off between cost and control. Since nonprofit firms are more restricted in how they consume net revenues, they experience more rapidly diminishing value of a dollar saved, and they are less a...

We formulate a model of reference-dependent preferences based on the marginal rate of substitution at the reference-point of a reference-free utility function. Using binary choices on the trade-off between money and travel time, reference-dependence is captured by value functions that are centered at the reference. The model predicts a directly testable relationship among four commonly used val...