For medications available in multiple formulations, are there significant price differences between formulations, and what are the opportunity for savings if prescribers ordering the more expensive formulation switched to the less expensive formulation?
We are at the edge of an imminent massive transformation in an industry sector that accounts for about 20% of spending today, namely health care. This transformation will occur on account of emerging technologies for price transparency which will give decision-making stakeholders (e.g., patients and their advising physicians) timely access to accurate and personalized information about costs of care. Price transparency technologies are (and will be) as revolutionary in health care as Google and Amazon have been to shopping in general. While these technologies are motivated by the pressing need to reduce health care spending through price competition and reduction in market prices, these effects are by no means guaranteed.
Physician productivity is an important driver of key healthcare outcomes, such as quality of care, treatment costs and patient satisfaction, because physicians influence a vast majority of treatment decisions, and are central to the care delivery process. Thus, it is critical for researchers to understand how transformation technologies, such as electronic medical records (EMRs) impact physician productivity.
While platform business tactics are very visible and dominant in industries and firms that have embraced platform thinking, many businesses and firms are engaged in a platform game without realizing it, often to negative consequences. This article focuses on the electric vehicle (EV) segment.
Jonas Boehm, Hemant K. Bhargava, and Geoffrey Parker, “The Business of Electric Vehicles: A Platform Perspective”, Foundations and Trends in Technology, Information and Operations Management (forthcoming, last revised July 2020).
A new business form that is increasingly prominent, especially in platform business models, is an economic structure in which value is co-created by multiple producers and aggregated into a common bundle by a producer-consortium or independent firm. Examples include in-home video entertainment, technology goods and services, multi-sourced data platforms, and patent pools. This paper develops an economic model to study demand, production choices, revenue-sharing, and relative market power in such markets. Beyond these specific questions, it provides an architecture to rigorously answer additional questions in platform competition, market power, and effects of industrial realignment.
This paper examines ecosystem management issues in multi-sided platforms that provide infrastructure to coordinate the activities and interactions of contributors, consumers, and advertisers, and which motivate external contributors through revenue-sharing of ad payments. It provides insights on how various platform design parameters interplay with content provision decisions of contributors and the revenue-sharing arrangement between contributors and the platform.
We provide a model of a decentralized, dynamic auction market platform (e.g., eBay) in which a continuum of buyers and sellers participate in simultaneous, single-unit auctions each period. Our model accounts for the endogenous entry of agents and the impact of intertemporal optimization on bids. We estimate the structural primitives of our model using Kindle sales on eBay. We find that just over-one third of Kindle auctions on eBay result in an inefficient allocation with deadweight loss amounting to 14% of total possible market surplus.
We also find that partial centralization–for example, running half as many 2-unit, uniform-price auctions each day–would eliminate a large fraction of the inefficiency, but yield slightly lower seller revenues. Our results also highlight the importance of understanding platform composition effects–selection of agents into the market–in assessing the implications of market redesign. We also prove that the equilibrium of our model with a continuum of buyers and sellers is an approximate equilibrium of the analogous model with a finite number of agents.
Objective: To design and implement a tool that creates a secure, privacy preserving linkage of electronic health record (EHR) data across multiple sites in a large metropolitan area in the United States (Chicago, IL), for use in clinical research.
Theory suggests two sources of price dispersion amongst homogenous goods: market frictions or product heterogeneity. We collected posted-price listings for Kindle Fire tablets from eBay to determine if listing heterogeneity can explain the high degree of dispersion we observe. Using a basic set of controls and empirical techniques in line with the previous literature, we can explain only 13% of variation in posted prices, which is also in keeping with previous research.
However, we can explain 42% of the dispersion by applying machine learning to a richer set of variables, which we extract from raw downloaded HTML pages. We interpret this number as a bound on the role of market frictions in driving price dispersion. Variables describing the amount of information in the listings, the style of the listings, and the content of the listings’ text are effective price predictors independently of one another. Our analysis suggests that the content of the listings’ text plays a primal role in generating the predictions of the machine learning estimator. We repeat our analysis on a cross-section of products across a variety of categories on eBay, including household products, sporting goods, and other consumer electronics, and we find a comparable degree of price predictability across all of the products.
This paper provides an analysis and guidelines for developing data strategy for different types of platforms, and it identifies promising research opportunities into platform data strategy to better inform future academic research, strategic decision-making, and regulatory analysis.
Mutli-sided platforms typically thrive on the positive feedback loop of indirect network effects. However, many platforms also have to engage in active selling, through the use of sales agents to mobilize network participants. This paper is the first to examine sales force compensation design under network effects and develops a series of insights regarding how network effects alter compensation design.
Uniphore, an early Conversational Service Automation category leader, continues to execute its global strategy and has opened a new headquarters in Palo Alto CA. which will help further its expansion into new markets and serve its growing customer base.
The Future of Work Series at UC Davis presents "Artificial Intelligence or Sophisticated Mimicry: The Business and Ethics of Automated Systems"
Featuring speaker Mark Nitzberg, AI scientist, entrepreneur, and consultant to industry and government. Currently the Executive Director of the Center for Human Compatible Artificial Intelligence at UC Berkeley, head of strategic outreach for the Berkeley AI Research Lab, and a principal at the Cambrian.ai think tank network. Also featuring Hemant Bhargava, who currently serves as MSBA Program Chair at the UC Davis Graduate School of Management and is the Jerome and Elsie Suran Chair in Technology Management.
By most Wall Street measures, Comcast is overpaying for its acquisition of Sky, the British satellite TV, broadband and mobile services provider. When the U.S. cable giant announced last month that it had won the auction for a controlling stake in Sky by bidding $40 billion, shares of Comcast fell by as much as 8% intraday amid a slew of analyst downgrades. It now might have to pony up more money to buy Fox’s stake in Sky to get full ownership. “It’s an extraordinary price,” noted Mike Fries, CEO of rival telecom and satellite TV services provider Liberty Global, on Bloomberg TV.
Platform-enabled marketplaces, and other Internet-based goods and products with digital components and network effects are transforming the very idea of what a business is, how it creates value, and how it should be managed.
Industry leaders from Google and Autodesk share about the demand for talent in business analytics, how the future of business is transforming, and how the UC Davis Master of Science in Business Analytics program will partner with Silicon Valley and Bay Area corporations on real-world, hands-on student projects to prepare leaders for the digital economy. The inaugural UC Davis MSBA class will begin in San Francisco fall 2017.
Google recently announced a major move into several hardware products: Google Pixel (smartphones), Daydream View (virtual reality), Google Home (digital home) and Google Assistant (AI-based personal assistant).
It was a lot of fun attending Apigee’s “Adapt or Die” event on September 27 in the heart of San Francisco, and speaking on the panel “Who Ubers Who: How to Survive and Thrive in a Digital World of Mash-Ups, Matchmakers, and Marketplaces.” The best part was the 10-minute thriller movie “Adapt or Die” made by Mike Slade and starring Alexandra Grossi, whom I had a chance to meet, and featuring Apigee CEO Chet Kapoor as the muffin man! A hilarious and engaging way to get the point across about APIs, what Apigee is all about. Most of all it was joyful to observe the intensely positive “Can-do,” “Yes, or Here’s how” (rather than “No”) philosophy and exuberant attitude of Apigee employees.