Owner-Consumers and Efficiency Joseph Farrell GTE Laboratories If each household owns the same fraction of a firm as its share of consumption, shareholders unanimously want marginal-cost pricing. Otherwise, profits are overemphasised relative to consumer surplus.

We explore how private drug plans set cost-sharing in the context of Medicare Part D. While publicly-provided drug coverage typically involves uniform cost-sharing across drugs, we document substantial heterogeneity in the cost-sharing for different drugs within privately-provided plans. We also document that private plans systematically set higher consumer cost sharing for drugs or classes ass...

The present study was conducted in the year 2022-23, to identify different marketing channels area and analyse total cost, producer’s share consumer rupee, margins, efficiency price spread channels. Stratified multistage random sampling procedure adopted take a sample of 120 respondents from Bhograi block, Balasore, Odisha. data collected by personally interviewing selected with help questionna...

This paper considers the possibility that a firm can invest not only in the true product quality, but also in activities such as merchandising and store atmosphere that create affect influencing consumer perception of the product quality. Consumers base their purchase decisions on the signal of quality they experience, where the signal is affected by both the true product quality valued by the ...

OBJECTIVE Governments are increasing their focus on mandatory public health programmes following positive economic evaluations of their impact. This review aims to examine whether loss of consumer choice should be included in economic evaluations of mandatory health programmes (MHP). METHOD A systematic literature review was conducted to identify economic evaluations of MHP, whether they disc...

We examine sensitivity of estimates of recreation demand using the Travel Cost Method (TCM) to four factors. Three of the four have been routinely and widely discussed in the TCM literature: a) Poisson verses negative binomial regression; b) application of Englin correction to account for endogenous stratification; c) truncation of the data set to eliminate outliers. A fourth issue we address h...

Today’s wireless communication products become more complex and more integrated. The low cost prices paid by the consumer for wireless phones and the competitive market imposed a tremendous pressure to have low cost RF ICs. The test cost becomes almost the main factor determining profit margin. To economically test high volumes of integrated RF ICs at a fraction of the cost of the IC we have to...