A real options based model to select a balanced R&D portfolio

The R&D process in the pharmaceutical industry has a long and dynamic life then it is an ideal field of application for ROA. Actually, ROA implementation, as widely demonstrated in literature, is narrowed to very limited cases because its perceived complexity. This research wants to suggest a simplified method, respect the ones available in literature, that could foster the use of ROA: we built up an integer linear programming model, based on a model available in literature, useful for selecting a balanced R&D portfolio from a set of candidate drugs. The model has been tested through a case study

Open innovation: A real option to restore value to the biopharmaceutical R&D

The pharmaceutical landscape has changed, and new business models, based on alliances, are increasingly being adopted in this industry. Biotechnology advances have pushed this development, and pooling complementary resources coming from incumbents and newcomers is a key skill to succeed: these are the premises for a quick spread of the open innovation (OI) paradigm in this industry. R&D portfolio selection needs R&D project evaluation, and Real Options Analysis (ROA) is acknowledged as a powerful tool to evaluate uncertain projects that have an intrinsic flexibility. The present research aims to foster the use of ROA in the OI field in order to encourage firms to undertake this innovation model; to achieve this goal the authors propose a closed-form model that is easy to implement, to evaluate the OI initiative for selecting an optimal R&D portfolio. The study wants to support managers in optimal R&D portfolio construction in terms of choosing the most promising products, the means by which the related project has to be undertaken (in an open or closed manner; i.e. licensing-in or not) and the self-financing policy. The proposed model can be easily implemented into a spreadsheet, and the inputs needed to run it are usually requested to evaluate projects using the most used net-present-value-based methods. Moreover, some parameters of the model allow strategic aspects to be considered: for example the nature of the project (core/non-core), the impending project phase, and the risk-sharing opportunity. The results of the developed numerical example show that the selected portfolio is well balanced in terms of development stages, core/non-core therapeutic areas and, licensing-in (an inbound open innovation solution), is preferred in the case of products at their early stages of developmen

Risky choices in strategic environments: An experimental investigation of a real options game

Managers frequently make decisions under conditions of fundamental uncertainty due the stochastic nature of the outcomes and competitive rivalry. In this study, we experimentally test a theoretical model under fundamental uncertainty and competitive rivalry by designing a sequential interaction game between two players. The first mover can decide either to choose a sure outcome that assigns a risky outcome to the second mover or to pass the decision to the second mover. If the second player gets the chance to decide, she can choose between a sure outcome, conditioned by the assignment of a risky payoff to the first mover, or the sharing of the risky outcome with the first mover. We then introduce the following experimental treatments: (i) relegating second-mover participants to a purely passive role and substituting them with a random device (absence of strategic uncertainty - that is, when the source of uncertainty is a human subject); (ii) providing information about the behaviour of second-mover counterparts; and (iii) completely removing the second-mover participant.We find that decision makers are sensitive to the presence or absence of strategic uncertainty; indeed, in the presence of strategic uncertainty, first movers more often diverge from the behaviour predicted by the model. Given our experimental results, the theoretical model needs to be revisited. The standard model of monetary payoff-maximizing agents should be substituted by one of decision makers who maximize a utility function which includes the psychological cost induced by strategic uncertainty. (C) 2019 Published by Elsevier B.V

The Short- and Long-Term Impacts of COVID-19 Pandemic on the Sharing Economy: Distinguishing Between “Symptomatic” and “Asymptomatic” Platforms

Our study presents a systematic literature review on the repercussions of the COVID-19 pandemic on the different types of sharing economy platforms and the sharing economy phenomenon in its entirety. Our literature review helps understand how the characteristics of different services of the sharing economy combine with contingent factors, such as government-mandated lockdowns, changed consumer behaviors, and people's fear of contagion, to determine the magnitude of the impact of COVID-19 on the sharing economy both in the short run and in the long run. By examining these factors, we distinguish between sharing economy services/platforms that were (and possibly will be) negatively impacted by the COVID-19 pandemic (referred to as "symptomatic" platforms) and those that were not (and possibly will not be) impacted at all or even benefit (referred to as "asymptomatic" platforms). We then propose a new framework that combines traditional dimensions of sharing economy with a dimension resulting from the COVID-19 pandemic, i.e., the level of physical interaction required to deliver the sharing economy service. Building upon the extant literature, the framework helps better understand how the sharing economy will evolve after the pandemic. It also helps identify important research gaps that both academics and practitioners working on the field of sharing economy should address in the near future

Sharing economy and dynamic pricing: Is the impact of Airbnb on the hotel industry time-dependent?

Prior literature has reported significant price and revenue reductions in the hotel industry due to the emergence of Airbnb. Other studies have documented that hotels' price reactions to the penetration of Airbnb depend on their service level, e.g., low/medium-end versus high end. Relying on a large sample from the Italian market, we contribute by showing that the effect of Airbnb on hotels' price decisions does not only depend on incumbents’ quality level, but also on the difference between booking and check-in time. That is, the effect of the penetration of Airbnb on hotels' dynamic price decisions varies over time depending on the core segment hotels target

The management of dental practices in the post-covid 19 era: An economic and operational perspective

Background: In order to protect dental teams and their patients during the COVID-19 pandemic, dentists have had to adopt several measures (operating and post-operating procedures) which may increase the total treatment time and costs relating to individual protective measures. This paper will propose a thorough analysis of operating dentistry procedures, comparing the economic performance of the activity in a dental surgery before and after the adoption of these protective measures, which are required to contain the risk of SARS-COV-2 infections. Methods: The economic analysis is articulated in three approaches. Firstly, it assesses a reduction in markup by maintaining current charges (A); alternatively, it suggests revised charges to adopt in order to maintain unvaried levels of markup (B). And the third Approach (C) examines available dental treatments, highlighting how to profitably combine treatment volumes to reduce markup loss or a restricted increase in dental charges. Results: Maintaining dental charges could cause a loss in markup, even rising to 200% (A); attempting to maintain unvaried levels of markup will result in an increase in dental charges, even at 100% (B); and varying the volumes of the single dental treatments on offer (increasing those which current research indicates as the most profitable) could mitigate the economic impact of the measures to prevent the transmission of SARS-COV-2 (C). Conclusions: The authors of this paper provide managerial insights which can assist the dentist-entrepreneur to become aware of the boundaries of the economic consequences of governmental measures in containing the virus infection

CaCu3Ti4O12 single crystals: insights on growth and nanoscopic investigation

The combination of scanning impedance microscopy and conductive atomic force microscopy was applied to single crystals of the perovskite-type oxide CaCu3Ti4O12 (CCTO) in order to provide a local dielectric characterization on ingot sections. Both techniques clearly showed dielectric heterogeneities due to the presence of inclusions within crystals grown in different laboratories. Despite macroscopic characterizations, such as Laue diffraction, gave no indications for the presence of inclusions within the crystals, the discovery of dielectric heterogeneities prompted a careful structural analysis, which revealed the presence of crystalline CaTiO3 (CTO) precipitates. Thus, the scanning probe investigation provided the evidence for the electrical homogeneity within the CCTO crystal and the presence of internal barriers due to the CCTO/CTO interfaces

Gas radon emission related to geodynamic activity on Mt. Etna

We report preliminary observations on possible correlations between anomalies of subsoil radon concentration and geodynamical events on Mt. Etna. In recent years several studies have been carried out on radon as a precursor of geophysical events, most of them performed either on tectonic or volcanic areas. The peculiarity of our investigation lies on the choice of the etnean region, in which tectonic and volcanic features are both present. In order to characterize Mt. Etna features by investigating radon gas in soil, two stations were located along the NE-SW direction on Mt. Etna. Each of the two stations is fitted with a radon detector, a 3D seismic station and a meteorological station. Differences in the radon concentration trend in the data from north and south flanks could be linked to different faulting mechanisms and then to different mechanisms of radon uprising. The increase in soil radon concentration could be related to both seismic and volcanic events

A single amino acid change A19V in perforin: a novel, frequent predisposing factor to childhood acute lymphoblastic leukemia?

We screened 100 children with acute lymphoblastic leukemia (ALL) to assess the incidence of single amino acid change A91V in perform. Heterozygous A91V was found in 12/100 patients and 5/127 controls (OR, 3.4; 95%CI: 1.15-9.95; p=0.014). A91V is a novel and frequent predisposing factor for childhood ALL

Scanning Probe Microscopy on heterogeneous CaCu3Ti4O12 thin films

The conductive atomic force microscopy provided a local characterization of the dielectric heterogeneities in CaCu3Ti4O12 (CCTO) thin films deposited by MOCVD on IrO2 bottom electrode. In particular, both techniques have been employed to clarify the role of the inter- and sub-granular features in terms of conductive and insulating regions. The microstructure and the dielectric properties of CCTO thin films have been studied and the evidence of internal barriers in CCTO thin films has been provided. The role of internal barriers and the possible explanation for the extrinsic origin of the giant dielectric response in CCTO has been evaluated