Optimal Design of a Pharmaceutical Price–Volume Agreement Under Asymmetric Information About Expected Market Size

Price–volume agreements are commonly negotiated between drug manufacturers and third‐party payers for drugs. In one form a drug manufacturer pays a rebate to the payer on a portion of sales in excess of a specified threshold. We examine the optimal design of such an agreement under complete and asymmetric information about demand. We consider two types of uncertainty: information asymmetry, defined as the payer's uncertainty about mean demand; and market uncertainty, defined as both parties' uncertainty about true demand. We investigate the optimal contract design in the presence of asymmetric information. We find that an incentive compatible contract always exists; that the optimal price is decreasing in expected market size, while the rebate may be increasing or decreasing in expected market size; that the optimal contract for a manufacturer with the highest possible demand would include no rebate; and, in a special case, if the average reservation profit is non‐decreasing in expected market size, then the optimal contract includes no rebates for all manufacturers. Our analysis suggests that price–volume agreements with a rebate rate of 100% are not likely to be optimal if payers have the ability to negotiate prices as part of the agreement.     

A gamma goodness-of-fit test based on characteristic independence of the mean and coefficient of variation

Characterization theorems in probability and statistics are widely appreciated for their role in clarifying the structure of the families of probability distributions. Less well known is the role characterization theorems have as a natural, logical and effective starting point for constructing goodness-of-fit tests. The characteristic independence of the mean and variance and of the mean and the third central moment of a normal sample were used, respectively, by Lin and Mudholkar [1980. A simple test for normality against asymmetric alternatives. Biometrika 67, 455–461] and by Mudholkar et al. [2002a. Independence characterizations and testing normality against skewness-kurtosis alternatives. J. Statist. Plann. Inference 104, 485–501] for developing tests of normality. The characteristic independence of the maximum likelihood estimates of the population parameters was similarly used by Mudholkar et al. [2002b. Independence characterization and inverse Gaussian goodness-of-fit. Sankhya A 63, 362–374] to develop a test of the composite inverse Gaussian hypothesis. The gamma models are extensively used for applied research in the areas of econometrics, engineering and biomedical sciences; but there are few goodness-of-fit tests available to test if the data indeed come from a gamma population. In this paper we employ Hwang and Hu's [1999. On a characterization of the gamma distribution: the independence of the sample mean and the sample coefficient of variation. Ann. Inst. Statist. Math. 51, 749–753] characterization of the gamma population in terms of the independence of sample mean and coefficient of variation for developing such a test. The asymptotic null distribution of the proposed test statistic is obtained and empirically refined for use with samples of moderate size.     

The roles of caregivers and friends in adolescent daily emotion dynamics

Daily emotion dynamics provide valuable information about individuals’ emotion processes as they go about their lives. Emotion dynamics such as emotion levels (mean), emotion variability (degree of fluctuation), and emotion network density (strength of temporal connections among emotions) are associated with risks for various psychopathology in youth and adults. Prior work has shown that caregivers and friends play crucial socializing roles in adolescent emotional well-being, but less is known about their roles in daily emotion dynamics. This study examined whether caregiver emotion coaching, caregiver-adolescent closeness, and friendship quality were associated with adolescents’ emotion levels, emotion variability, and emotion network density. Further, we examined whether caregiver-adolescent closeness moderated the associations between coaching and emotion dynamics. Participants were 150 adolescents (61% girls; M_age = 14.75) and one of their caregivers (95% female; M_age = 43.35) who completed a baseline survey and 21 daily surveys. Results showed that caregiver emotion coaching interacted with caregiver-adolescent closeness in predicting emotion levels and variability. Specifically, when closeness was higher, emotion coaching was significantly associated with lower sadness and anger levels, higher happiness levels, and lower happiness variability. Caregiver emotion coaching, independent of closeness, was also associated with lower anxiety levels, lower sadness variability, and lower emotion network density. Friendship quality was significantly associated with lower levels of sadness, anxiety, and anger, higher levels of happiness, and lower variability in anxiety and anger. These findings suggest that caregivers and friends are central to everyday emotion levels and variability and a more flexible emotion system in adolescents.     

From dechristianization to laicization: state,Church, and believers in Russia

The history of twentieth-century Russian Orthodoxy has been written largely in terms of the Church and state, martyr and oppressor, all within the traditional paradigm of ineluctable, ubiquitous secularization. This article shifts the focus from Bolshevik and bishop to believer, framed within the more recent model that emphasizes “believing without belonging”. While that new paradigm fits the Russian case, the latter certainly had unique specifics: it was precisely the coercive disestablishment of the Church that empowered parishioners and inadvertently laid the foundations for the post-Soviet religious revival. While the depth and meaning of that revival is open to dispute and calibration, it has unquestionably posed a dramatic contrast to contemporary Europe.     

Teaching Religion and Media: Syllabi and Pedagogy

This study explores the pedagogy of Religion and Media. The topic has garnered growing attention in recent years (Stout, 2012 Stout, D. (2012). Media and religion: Foundations of an emerging field. New York, NY: Routledge. [Google Scholar]) and the sheer array of classes is a testament to its status as a lively growing topic. This study takes a nonnormative, exploratory approach to uncover four key categorical approaches to how the topic of religion and media is taught in universities. The methodology included a textual analysis of 48 syllabi and interviews with professors who teach religion and media.     

Leadership style and activating potential moderators of the relationships among leader emotional displays and outcomes

The present study argues that leader emotional displays are important to consider both within and outside of transformational/charismatic paradigms and must look beyond positive and negative affect. Accordingly, this experiment examined the effects of emotion valence as moderated by leadership style (transformational vs. transactional) and activating potential (high vs. low) on follower satisfaction, evaluations of the leader, and creative task performance. Findings showed differential effects of positive and negative emotions for different leader styles for evaluations of transformational leadership and leader effectiveness and for follower performance. Additionally, positive emotions with higher-activating potential resulted in more desirable outcomes than those lower in activating potential, but the reverse was true for negative emotions. Findings are discussed in light of research and practical implications.     

The role of attribution of causality in economic decision making

Research has established that economic decisions often deviate from game theoretic predictions. We explore the process of causal thinking as a possible explanation for such deviations. Specifically, we suggest that causal information affects economic decisions based on the principles advocated by Weiner, 1985, Weiner, 1986 attribution theory (AT) of motivation and emotion. Prior research in this area considered only subsets of the dimensions employed by the theory. We test the predictions stemming from AT in contexts where economic decisions involve sharing gains between party members (e.g., splitting profits) and assess how such decisions are affected by the reasons attributed for obtaining the gains. Results indicate a significant link between causal attribution and economic decisions and shed light on the rules and the rationale that guide this link. We conclude that research into economic decision making should pay a greater attention to the explanatory value of AT.