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Cost-Effectiveness Analysis in Markets with High Fixed Costs [PDF]
We consider how to conduct cost-effectiveness analysis when the social cost of a resource differs from the posted price. From the social perspective, the true cost of a medical intervention is the marginal cost of delivering another unit of a treatment, plus the social cost (deadweight loss) of raising the revenue to fund the treatment.
David M. Cutler +1 more
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The Innovation Decision and Fixed Costs
2002In this study we analyse two new indicators of a firm’s innovative output, i.e., sales per employee of products that are ‘new to the firm’ and sales per employee of products that are ‘new to the firm’s industry’. These indicators were first analysed in Brouwer and Kleinknecht (1996). They noted that, during the observation year, many firms had no sales
van Montfort, C.A.G.M. +2 more
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SSRN Electronic Journal, 2018
According to standard economic wisdom, fixed costs should not matter for pricing decisions. However, outside economics, it is widely accepted that firms need to increase their prices after a fixed cost rise. In this note, we show that a liquidity-constrained firm that maximizes lifetime profits should increase its price after a fixed cost increase, if ...
Kamphorst, Jurjen +2 more
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According to standard economic wisdom, fixed costs should not matter for pricing decisions. However, outside economics, it is widely accepted that firms need to increase their prices after a fixed cost rise. In this note, we show that a liquidity-constrained firm that maximizes lifetime profits should increase its price after a fixed cost increase, if ...
Kamphorst, Jurjen +2 more
openaire +2 more sources
Fixed‐cost transportation problems
Naval Research Logistics Quarterly, 1961AbstractThis paper formulates a fixed‐cost transportation problem as an integer program, describes some of its special properties, and suggests an approximate method of solution. Examples are given to demonstrate the approximation technique.
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Degeneracy in fixed cost transportation problems
Mathematical Programming, 1975A perturbation method is introduced which transforms any fixed cost transportation problem F into a degeneracy-free equivalent F′. If a basic optimal solution to F′ is known, an optimal solution to F can be obtained by means of simple rounding.
Joachim H. Ahrens, Gerd Finke
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The Accounting Review, 1940
Abstract The article discusses about various issues related to fixed and variable costs. In considering the problem of the adoption of uniform accounting principles, it would seem that not enough attention is given to the matter of interpretative reporting. Once the bookkeeping principles have been established, the matter of preparing
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Abstract The article discusses about various issues related to fixed and variable costs. In considering the problem of the adoption of uniform accounting principles, it would seem that not enough attention is given to the matter of interpretative reporting. Once the bookkeeping principles have been established, the matter of preparing
openaire +1 more source
Economics Letters, 1992
Abstract The occurrence and impact of fixed cost messages are analyzed by means of an asymmetric information game and related to the sender's stake in persuading the receiver, and the cost of a message.
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Abstract The occurrence and impact of fixed cost messages are analyzed by means of an asymmetric information game and related to the sender's stake in persuading the receiver, and the cost of a message.
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Fixed costs rules are intended to provide certainty on how much an unsuccessful party is likely to be ordered to pay to the successful party under a party and party costs order. They are also intended to keep costs down to proportionate levels. This chapter first discusses the fixed costs that apply to simple cases which are either undefended, or where
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Fixed Costs Versus Fixed Revenue
Proceedings of the Water Environment Federation, 2012Rocky Craley, Yvette Downs
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