Management Science Review

Fast rising health care costs continues to be one of the important policy issues that has major societal costs in the United States. Electronic Health Record (EHR) adoption is considered as a policy tool to reduce health care costs while simultaneously improving the quality of care; and EHRs are being promoted with substantial public subsidies. The underlying belief behind these policies is that EHR adoption would lower the health care costs and improve the quality of care via improving clinical decisions and care coordination, and reducing medical errors, unnecessary re-admissions, and over-testing. However, EHR systems are also expensive to acquire, implement and maintain, and several hospitals that adopted EHR systems have experienced an increase in their operating costs.

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Setting prices in a constantly changing environment is hard. When you consider the history of shopping, it’s probably true that consumers have never had it easier than they do today. Want to know if that food processor is any good? You can read hundreds of reviews from experts and regular folks alike. Need an item tomorrow that’s sitting in a warehouse across the country? Just choose overnight shipping on the checkout page. Of course, the convenience of online shopping has been good for retailers as well, since the Internet allows businesses to reach much larger audiences.

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In 2007 Toyota sold more cars than General Motors. It was the first time since 1930 that GM lost the Number 1 position in the world auto market. Bob Lutz, GM's vice chairman, claimed that "there is absolutely nothing to be gained by being the world's biggest." However, Rick Wagoner, GM's Chairman and CEO, stated that "hanging onto the No. 1 sales ranking is a distinction GM won't give up without a fight". In fact, by means of aggressive (and costly) price cuts GM eventually regained the lead. Lutz lamented that "I tried to tell them [the Board] to say, no, it's not our objective to be No. 1, but they just couldn't do it."

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How do patients choose care in the healthcare market, a service sector that spends almost 18% of the GDP in the United States every year? Knowledge of patient preferences and choice behavior in care seeking—i.e., what patients want—is essential for managing modern healthcare enterprises as the healthcare sector becomes more patient-centered.

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Extensive debate exists among policy makers and economists about the employment of highly skilled immigrants in the United States. One argument is that foreign workers drive down wages and take jobs that would otherwise go to domestic laborers. Another is that U.S. firms seek out foreign workers because they can’t find qualified U.S. citizens for the positions, and that these foreigners bring unique and valuable skills that help U.S. companies compete in the global marketplace. While these issues have been heavily debated, empirical studies examining these questions in a focused setting are limited, principally because of the nonavailability of data.

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What are the consequences for corporate takeovers when shareholders ascribe different values to a firm, with some shareholders valuing a firm more than others? How should an acquiring firm design its bid---the amount that is offered and whether to offer primarily cash or equity---and what are the implications for the takeover premia that might be paid? Similarly, how does such heterogeneity in shareholder values matter for the returns to both the target and the acquiring firms, the likelihood of success of an offer, and the evolution of the firms’ share prices following a takeover offer?

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Perceptions of fairness play an important role in labor market relations and affect market efficiency. While most of the previous studies have focused on behavioral effects, the article “Unfair Pay and Health” by Armin Falk, Fabian Kosse, Ingo Menrath, Pablo E. Verde, and Johannes Siegrist shows a strong link between unfair pay and heart rate variability (HRV). HRV is a stress-related early indicator of impaired cardiac autonomic control which has been shown to predict coronary heart disease. The implications of these findings could be considerable. According to the Centers for Disease Control and Prevention, one in every three deaths in the U.S. is related to cardiovascular diseases.

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Customized pricing has been an extended practice in B2C e-commerce for several years now. More recently, bricks-and-mortar retailers have engaged in the practice of personalized promotions. Beacon-based technology and indoor positioning systems allow to identify the location of a customer in a store through a mobile app and launch discount coupons in real time. This implies a tremendous change in the way retailers think of promotions, switching from traditional massive promotions to promotions tailored for specific individuals.

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Hedging is a risk minimizing strategy that people pursue in a variety of financial contexts, from the allocation of their investments to insurance purchased for their health and home. In the article “Betting Your Favorite to Win: Costly Reluctance to Hedge Desired Outcomes,” Carey Morewedge, Simone Tang, and Richard Larrick examine whether people exhibit a similar appetite for hedging in emotional contexts. Hedging could act as a form of emotional insurance that buffers negative emotions if a desired outcome does not happen. When filling out her office pool “brackets” during March Madness, a fan could bet against her favorite NCAA basketball team, so that money would minimize her disappointment if her team loses on its way to the championship.

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Operations and supply chain management research has traditionally taken the approach to increase profitability as the objective. As global companies increasingly globalize their supply chain, they are increasingly sourcing or manufacturing in emerging economies. Operating in such economies inevitably bring in new dimensions ­ environmental sustainability, social and economic community development, and business integrity - that are crucial to ensuring stability and growth of the whole supply chain. These dimensions necessitate the focus of not just the factories or resources linked to global supply chain, but the general welfare and economic well-being of such economies.

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