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Handbook on the economics and theory of the firm
The title of the handbook makes reference to the economics of the firm and the theory of the firm, two areas which are traditionally treated separately in the literature. The novel idea of this authoritative volume is to demonstrate that these two areas closely interact.
Book
Cost-effectiveness of WHO Problem Management Plus for adults with mood and anxiety disorders in a post-conflict area of Pakistan: randomised controlled trial
With the development of evidence-based interventions for treatment of priority mental health conditions in humanitarian settings, it is important to establish the cost-effectiveness of such interventions to enable their scale-up.
To evaluate the cost-effectiveness of the Problem Management Plus (PM+) intervention compared with enhanced usual care (EUC) for common mental disorders in primary healthcare in Peshawar, Pakistan. Trial registration ACTRN12614001235695 (anzctr.org.au).
We randomly allocated 346 participants to either PM+ (n = 172) or EUC (n = 174). Effectiveness was measured using the Hospital Anxiety and Depression Scale (HADS) at 3 months post-intervention. Cost-effectiveness analysis was performed as incremental costs (measured in Pakistani rupees, PKR) per unit change in anxiety, depression and functioning scores.
The total cost of delivering PM+ per participant was estimated at PKR 16 967 (US$163.14) using an international trainer and supervisor, and PKR 3645 (US$35.04) employing a local trainer. The mean cost per unit score improvement in anxiety and depression symptoms on the HADS was PKR 2957 (95% CI 2262-4029) (US$28) with an international trainer/supervisor and PKR 588 (95% CI 434-820) (US$6) with a local trainer/supervisor. The mean incremental cost-effectiveness ratio (ICER) to successfully treat a case of depression (PHQ-9 ≥ 10) using an international supervisor was PKR 53 770 (95% CI 39 394-77 399) (US$517), compared with PKR 10 705 (95% CI 7731-15 627) (US$102.93) using a local supervisor.
The PM+ intervention was more effective but also more costly than EUC in reducing symptoms of anxiety, depression and improving functioning in adults impaired by psychological distress in a post-conflict setting of Pakistan.
Journal Article
Committed Diversification: Why Authenticity Insulates Against Penalties for Diversification
Work in organization theory has highlighted that diversification triggers concerns over the newly diversified firm’s capability or commitment to serve its audience. Although this work has shown that perceived lack of commitment may be an important problem for diversifying firms, it has not been established what might resolve these commitment concerns and reduce demand-side penalties for diversifying to serve new customers. We argue that a firm’s ability to signal authenticity will increase perceptions of commitment and resolve ambiguities about commitment generated by diversification. We use a multimethod approach including qualitative evidence from a case in the behavioral health industry and experimental methods to isolate these observed effects. In a qualitative study, we examine a case in which two firms saw divergent outcomes when they tried to engage in the exact same diversification activity and show that when a firm signals that they are highly authentic (i.e., when stakeholders perceive the firm to be willing to fulfill commitments even while sacrificing short-term rewards), diversification does not threaten perceived commitment. However, those who cannot signal authenticity are less likely to be selected in the market because diversification is seen as a threat to perceived commitment. We then test these findings in two experiments using the primary customer audience, addiction recovery therapists, as participants. In a final experiment, we test some key boundary conditions of our argument, finding support in the context of markets for car mechanics, which suggests that our argument may be applicable more broadly than healthcare into markets for various types of credence goods.
Journal Article
