According to W. Edwards Deming, American companies require nothing less than a transformation of management style and of governmental relations with industry. In Out of the Crisis, originally published in 1982, Deming offers a theory of management based on his famous 14 Points for Management. Management's failure to plan for the future, he claims, brings about loss of market, which brings about loss of jobs. Management must be judged not only by the quarterly dividend, but by innovative plans to stay in business, protect investment, ensure future dividends, and provide more jobs through improved product and service. In simple, direct language, he explains the principles of management transformation and how to apply them.

Out of the Crisis

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The Theory of Industrial Organization

Resource-based theories of competitive advantage: A ten-year retrospective on the resource-based view

Typologies are an important way of organizing the complex cause-effect relationships that are key building blocks of the strategy and organization literatures. Here, I develop a novel theoretical perspective on causal core and periphery, which is based on how elements of a configuration are connected to outcomes. Using data on hightechnology firms, I empirically investigate configurations based on the Miles and Snow typology using fuzzy set qualitative comparative analysis (fsQCA). My findings show how the theoretical perspective developed here allows for a detailed analysis of causal core, periphery, and asymmetry, shifting the focus to midrange theories of causal processes.

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Building Better Causal Theories: A Fuzzy Set Approach to Typologies in Organization Research

Mixed methods research offers powerful tools for investigating complex processes and systems in health and health care. This article describes integration principles and practices at three levels in mixed methods research and provides illustrative examples. Integration at the study design level occurs through three basic mixed method designs—exploratory sequential, explanatory sequential, and convergent—and through four advanced frameworks—multistage, intervention, case study, and participatory. Integration at the methods level occurs through four approaches. In connecting, one database links to the other through sampling. With building, one database informs the data collection approach of the other. When merging, the two databases are brought together for analysis. With embedding, data collection and analysis link at multiple points. Integration at the interpretation and reporting level occurs through narrative, data transformation, and joint display. The fit of integration describes the extent the qualitative and quantitative findings cohere. Understanding these principles and practices of integration can help health services researchers leverage the strengths of mixed methods.

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Achieving Integration in Mixed Methods Designs—Principles and Practices

In most cases, the premature announcement of a future product cannot be anti-competitive When there are network effects, however, firms may have incentives to strategically prenannounce products; such preannouncements are often referred to as "vaporware" Anticompetitive vaporware allegations have been leveled at IBM and Microsoft Despite the antitrust concern about vaporware, there is no empirical work on the issue In this paper, we empirically test for network effects and vaporware effects in the DVD market We find that there are network effects in the DVD market and that the preannouncement by DIVX indeed slowed down the adoption of DVD technology

The DVD vs. DIVX Standard War: Network Effects and Empirical Evidence of Vaporware

Previous work has found a strong connection between the most recent economic recession and reductions in private health spending. However, the effect of economic downturns on Medicare spending is less clear. In contrast to studies involving earlier time periods, our study found that when the macroeconomy slowed during the Great Recession of 2007–09, so did Medicare spending growth. A small (14 percent) but significant share of the decline in Medicare spending growth from 2009 to 2012 relative to growth from 2004 to 2009 can be attributed to lingering effects of the recession. Absent the economic downturn, Medicare spending would have been $4 billion higher in 2009–12. A major reason for the relatively small impact of the macroeconomy is the relative lack of labor-force participation among people ages sixty-five and older. We estimate that if they had been working at the same rate as the nonelderly before the recession, the effect of the downturn on Medicare spending growth would have been twice as large.

The Economic Downturn And Its Lingering Effects Reduced Medicare Spending Growth By $4 Billion In 2009–12

The U.S. healthcare system is in critical condition--but this should come as a surprise to no one. Yet until now the solutions proposed have been unworkable, pie-in-the-sky plans that have had little chance of becoming law and even less of succeeding. In Code Red, David Dranove, one of the nation's leading experts on the economics of healthcare, proposes a set of feasible solutions that address access, efficiency, and quality.

	Dranove offers pragmatic remedies, some of them controversial, all of them crucially needed to restore the system to vitality. He pays special attention to the plight of the uninsured, and proposes a new direction that promises to make premier healthcare for all Americans a national reality. Setting his story against the backdrop of healthcare in the United States from the early twentieth century to the present day, he reveals why a century of private and public sector efforts to reform the ailing system have largely failed. He draws on insights from economics to diagnose the root causes of rising costs and diminishing access to quality care, such as inadequate information, perverse incentives, and malfunctioning insurance markets. Dranove describes the ongoing efforts to revive the system--including the rise of consumerism, the quality movement, and initiatives to expand access--and argues that these efforts are doomed to fail without more fundamental, systemic, market-based reforms. Code Red lays the foundation for a thriving healthcare system and is indispensable for anyone trying to make sense of the thorny issues of healthcare reform.

Code Red: An Economist Explains How to Revive the Healthcare System without Destroying It

We present a model in which prospective patients are liquidity constrained, and thus health insurance allows patients access to treatments and services that they otherwise would have been unable to afford. Consistent with large expansions of insurance in the U.S. (e.g., the Affordable Care Act), we assume that policies expand the set of services that must be covered by insurance. We show that the profit-maximizing price for an innovative treatment is greater in the presence of health insurance than it would be for an uninsured population. We also show that consumer surplus is less than it would be if the innovation was not covered. These results show that even in the absence of moral hazard, there are channels through which insurance can negatively affect consumer welfare. Our model also provides an economic rationale for the claim that pharmaceutical firms set prices that exceed the value their products create. We empirically examine our model's predictions by studying the pricing of oncology drugs following the 2003 passage of Medicare Part D. Prior to 2003, drugs covered under Medicare Part B had higher prices than those that would eventually be covered under Part D. In general, the trends in pricing across these categories were similar. However, after 2003 there was a far greater increase in prices for products covered under Part D, and as result, products covered by both programs were sold at similar prices. In addition, these prices were quite high compared to the value created by the products---suggesting that the forced bundle of Part D might have allowed firms to capture more value than their products created.Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.

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Insurance and the High Prices of Pharmaceuticals

The developing fertility preservation technologies offer new options, but not without a cost As the technologies become integrated into the healthcare marketplace, cost will become an even greater issue A critical question in this discussion is whether young women and their parents would be willing to pay for insurance to cover the cost of these procedures

David Dranove

Papers

The DVD vs. DIVX Standard War: Network Effects and Empirical Evidence of Vaporware

The Economic Downturn And Its Lingering Effects Reduced Medicare Spending Growth By $4 Billion In 2009–12

Code Red: An Economist Explains How to Revive the Healthcare System without Destroying It

Insurance and the High Prices of Pharmaceuticals

Anticipating ovarian tissue cryopreservation in the health-care marketplace: a willingness to pay assessment.