econ review question 29

a follow up on question 27

http://www.wired.com/business/2012/07/ff_lyfekitchens/

by the way, they are still going: http://restaurant.lyfekitchen.com/menu/full-menu/

You often here companies like Wal-Mart refered to as "logistics companies". from an operations perspective, what is McDonald's?

How does that apply to Lyfe Kitchens?

econ review question 28

http://www.youtube.com/watch?v=eYsf5rIKgHc

consider different types of goods (inferior, normal).

how is health care like a toy dog?

use the idea of health as a normal good to explain why we would expect to see a rising portion of GDP expended on health as we become wealthier.

here's the usual perspective:

http://www.pbs.org/newshour/rundown/health-costs-how-the-us-compares-with-other-countries/


how does economic signaling come into play with health care? health insurance?

if we aren't getting more for our dollar, why do we keep spending more? greedy insurance companies? greedy health care providers? was there ever a time when human beings weren't greedy? some age of generosity? do you foresee human beings becoming universally altruistic in the future? if not, what should we do?

econ review quesiton 27

http://youtu.be/vcZHeUSDZ6M

Discuss the difference between shareholder and stakeholder theory.

Why does McDonald's sell food that is bad for us? Why do we buy it? What should (could) government do about it?

If you impose a Pigouvian tax on fast food, what will happen? consider short and long run, consider social welfare. can you say with certainty?

Let's assume the worst - that McDonald's wants to destroy the environment and make us all fat and sick.What is the best policy mix to deal with that? (I don't happen to think that is true, but let's use that straw-man.)

econ review question 26

watch the video first before you read my questions below:

http://youtu.be/kbJcQYVtZMo























does it matter that this was a corporate sponsored event? that it was not "spontaneous" at all?

does it matter that this corporation is for profit? would it have mattered if it was non-profit?

why do non-profit organizations exist?

why are hospitals transitioning to for-profit status? should you care as a patient? what are the differences in incentives faced by for-profit and not-for-profit hospitals? how would you expect them to behave differently as a result?

econ review question 25

I found this story about a quartet from the Philadelphia Orchestra who played a short concert on their plane on the way to China after they found themselves stuck for three hours on the tarmac.

Here is the story from NPR:

http://www.npr.org/blogs/thetwo-way/2013/06/07/189544736/why-being-stuck-on-a-tarmac-with-the-philly-orchestra-rocks

Here is the video as posted on YouTube:

http://youtu.be/dFhYPsgroMk

Talk about the economics of this moment. Perhaps transaction costs, and utility.

What about the role of IT?

Will we see more or less of these moments?

How is this relevant to health care?

Always remember the legal/policy environment.

econ review question 24

is there stagnation in health care?

http://youtu.be/_93CXTt2K7c

if yes, what are the forces behind it? if no, where do you see it? is it real innovation - like the leap from no electricity to electricity, or is it like the toilet tank with plastic fish?

given the current policy environment, what is the future of health care innovation?

econ review question 23

Explain what Mr. Roth is talking about in terms of agency theory

http://youtu.be/YwHO2HnwfnA

econ review question 22

http://youtu.be/zd-dqUuvLk4

law and economics - why patents and copyrights? how do they help expand innovation? how do they interfere with innovation?


how do you get more innovation in your organization? how do you get more innovation in society?

how important is this "innovation thing" anyway? (ch. 8, Baye; ch. 9 Mankiw)

econ review question 21

http://youtu.be/fir5HI0Gwrc

multiple lenses again

econ - competition? differentiation? what drives innovation?

quality - the patient centered experience? patient centered design?

other lenses?

econ review question 20

the economics of "free"

http://youtu.be/WT3772yhr0o

as you watch the video, analyze the behavior from different lenses -

economics - why are self-interested actors involved in this? inferior/normal goods? marginal cost? fixed costs?

legal - how could law increase or decrease this sort of collaboration?

IT - kind of obvious, but how does it make this possible? perhaps you have less obvious observations

quality - what are the quality issues?

health systems - how has/will the sharing economy penetrate our labyrinthine health system?

econ review question 19

Suppose you are the DCA of Ft. Lost in the Swamp’s community hospital. The Family Practice Clinic is interested in hiring an additional doctor. The cost per day of an additional doctor is about $800 in salary and benefits.

You have asked your RM to pull the supporting data for the clinic, including changes in productivity as a result of the last three hires.

The last three hires include a doctor, a nurse, and a medical clerk. The daily cost of a nurse is about $450, the daily cost of a clerk is about $200.

The clinic saw an increase of 5 patients per day as a result of hiring the last doc, 3 patients a day for the last nurse, and 2 patients a day for the last clerk.

What does this information suggest to you about the actual needs of the Family Practice clinic? If there is room in the budget to hire an additional worker, what kind of worker would likely increase productivity most efficiently?

What is the economic principle involved? (hint: ch. 5)

econ review question 18

So there was big news last year that "The Chinese" were buying Smithfield, a large meat-packer.

(in case you hadn't heard, see http://online.wsj.com/article/SB10001424127887324412604578512722044165756.html )

Use the logic of oligopoly (Bertrand or Cournot) and game theory to explain why you just don't care.

In fact, after you contemplate the implied marginal product of Smithfield, you're rather pleased about the situation.

econ review question 17

here's an interesting ad campaign by Coke.

http://www.thedieline.com/blog/2013/5/29/a-coke-by-any-other-name.html

how do brands affect demand for a product?

econ review question 16

Do concierge practices that charge a retainer fee increase social welfare, or is the fee simply a transfer of consumer surplus to the producer?

econ review question 15

Some concierge practices ask patients to pay a retainer fee in addition to a per visit fee. If the per visit fee pays the practice’s marginal costs, what is the retainer doing? In a competitive market, price=marginal cost. Why are patients willing to pay this retainer, assuming the per visit fee=marginal cost?