Consumer Welfare Consequences of exchanges of Cost Information

2001 ◽  
Author(s):  
Oliver M. M. Richard ◽  
Olivier Armantier
Keyword(s):  
Consumer Welfare ◽  
Cost Information ◽  
Welfare Consequences

Social Welfare

2013 ◽  
Author(s):  
Louis Kaplow
Keyword(s):  
Social Welfare ◽  
Marginal Cost ◽  
Consumer Welfare ◽  
The Social ◽  
Welfare Consequences ◽  
Dynamic Perspective ◽  
Excessive Entry ◽  
Allocative Inefficiency

This chapter examines the social welfare consequences of coordinated oligopolistic price elevation. From the outset, it is notable that none of the pertinent theory directly distinguishes between successful coordination due merely to recognized interdependence and that resulting from classic cartel behavior, or various cases in between. The harm from price coordination in terms of allocative inefficiency or loss in consumer welfare depends most directly on the extent and duration of supracompetitive pricing. From a dynamic perspective, price elevation may also cause production inefficiency on account of excessive entry. The expectation of above-marginal-cost prices also induces a number of other kinds of investments, many (but not all) of which are efficient.

The Micro and Macro of Managerial Beliefs

2020 ◽  
Author(s):  
Jose Maria Barrero
Keyword(s):  
Rational Expectations ◽  
Asset Price ◽  
Heterogeneous Firms ◽  
Adjustment Costs ◽  
Consumer Welfare ◽  
Sales Growth ◽  
Firm Level ◽  
Managerial Decisions ◽  
Managerial Beliefs ◽  
Growth Volatility

This paper studies how biases in managerial beliefs affect managerial decisions, firm performance, and the macroeconomy. Using a new survey of US managers I establish three facts. (1) Managers are not over-optimistic: sales growth forecasts on average do not exceed realizations. (2) Managers are overprecise (overconfident): they underestimate future sales growth volatility. (3) Managers overextrapolate: their forecasts are too optimistic after positive shocks and too pessimistic after negative shocks. To quantify the implications of these facts, I estimate a dynamic general equilibrium model in which managers of heterogeneous firms use a subjective beliefs process to make forward-looking hiring decisions. Overprecision and overextrapolation lead managers to overreact to firm-level shocks and overspend on adjustment costs, destroying 2.1 percent of the typical firm’s value. Pervasive overreaction leads to excess volatility and reallocation, lowering consumer welfare by 0.5 to 2.3 percent relative to the rational expectations equilibrium. These findings suggest overreaction may amplify asset-price and business cycle fluctuations.

The effect of hospital characteristics on pediatric neuromuscular scoliosis fusion cost

2019 ◽  
Vol 24 (6) ◽  
pp. 713-721
Author(s):  
Jonathan Dallas ◽  
Chevis N. Shannon ◽  
Christopher M. Bonfield
Keyword(s):  
Spinal Fusion ◽  
Economies Of Scale ◽  
Hospital Costs ◽  
Neuromuscular Scoliosis ◽  
Teaching Hospitals ◽  
Inclusion Criteria ◽  
Cost Information ◽  
Nonprofit Hospitals ◽  
Disease Etiology ◽  
Hospital Characteristics

OBJECTIVESpinal fusion is used in the treatment of pediatric neuromuscular scoliosis (NMS) to improve spine alignment and delay disease progression. However, patients with NMS are often medically complex and require a higher level of care than those with other types of scoliosis, leading to higher treatment costs. The purpose of this study was to 1) characterize the cost of pediatric NMS fusion in the US and 2) determine hospital characteristics associated with changes in overall cost.METHODSPatients were identified from the National Inpatient Sample (2012 to the first 3 quarters of 2015). Inclusion criteria selected for patients with NMS, spinal fusion of at least 4 vertebral levels, and elective hospitalization. Patients with no cost information were excluded. Sociodemographics, treating hospital characteristics, disease etiology/severity, comorbidities, length of stay, and hospital costs were collected. Univariable analysis and multivariable gamma log-link regression were used to determine hospital characteristics associated with changes in cost.RESULTSA total of 1780 weighted patients met inclusion criteria. The median cost was $68,815. Following multivariable regression, both small (+$11,580, p < 0.001) and medium (+$6329, p < 0.001) hospitals had higher costs than large hospitals. Rural hospitals had higher costs than urban teaching hospitals (+$32,438, p < 0.001). Nonprofit hospitals were more expensive than both government (–$4518, p = 0.030) and investor-owned (–$10,240, p = 0.001) hospitals. There was significant variability by US census division; compared with the South Atlantic, all other divisions except for the Middle Atlantic had significantly higher costs, most notably the West North Central (+$15,203, p < 0.001) and the Pacific (+$22,235, p < 0.001). Hospital fusion volume was not associated with total cost.CONCLUSIONSA number of hospital factors were associated with changes in fusion cost. Larger hospitals may be able to achieve decreased costs due to economies of scale. Regional differences could reflect uncontrolled-for variability in underlying patient populations or systems-level and policy differences. Overall, this analysis identified multiple systemic patterns that could be targets of further cost-related interventions.

Force Oriented Cost Information System (FOCIS) User's Manual

2013 ◽  
Author(s):  
James L. Wilson ◽  
Kenton G. Kasana ◽  
Charles V. Fletcher ◽  
Alexander O. Gallo ◽  
Timothy J. Graves ◽  
...  
Keyword(s):  
Information System ◽  
Cost Information
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