Contracts, Biases and Consumption of Access Services

We consider a consumption model that takes into account the valuation and demand uncertainties that consumers face while using access services. Typical examples of such services include telecommunication services, extended warranties for consumer electronics, and club memberships. We demonstrate that consumption is affected by contract structure (pay-peruse vs. three part tariffs) even if the optimal consumption plans are identical. We find that a majority of individuals correctly use a threshold policy that is similar to a nearly optimal heuristic, however they use the free units too quickly leading to overconsumption and lost surplus. These errors are partially driven by mistaken beliefs about the value distribution. We also measure subjectsâ willingness to pay for a contract with free access units, and we find that nearly half of subjects are willing to pay at least the full per-unit price, with a substantial fraction willing to overpay. The optimal firm strategy is therefore to offer a contract that presells access units at a very small discount; this strategy increases revenue by 8 − 15% compared to only offering a pay-per-use contract.access services, pricing contracts, decision biases, experiment

The Effect of Infliximab Therapy on Maculopathy in Behcet's Panuveitis: A Case Report

Aim: To report a case of Behcet’s panuveitis and unilateral inflammatory maculopathy which was refractory to conventional immunosuppressive therapy but responded well to long-term treatment with the tumor necrosis factor-alpha inhibitor infliximab. Methods: Reporting the effect of intravenous infliximab infusion therapy for 54 weeks in a case of Behcet’s panuveitis and unilateral inflammatory maculopathy. The patient’s best corrected visual acuity was monitored, and biomicroscopic and fundus examinations as well as macular thickness map analysis by stratus optical coherence tomography were performed. Results: The best corrected visual acuity in his right eye improved after the resolution of inflammatory signs on biomicroscopic and fundus examinations as well as on stratus optical coherence tomography macular thickness analysis reports. No significant systemic side effects were noted. Conclusions: Long-term therapy with infliximab is effective and safe for refractory inflammatory maculopathy in Behcet’s disease. We report this case to contribute to the few previously reported cases showing the beneficial effect of long-term infliximab therapy for Behcet’s panuveitis. In conclusion, early initiation of infliximab therapy for inflammatory maculopathy in Behcet’s disease preserves and improves visual acuity

Long-Term Cyclophosphamide Treatment in a Case with Serpiginous Choroiditis

Purpose: To report the effect of long-term therapy with the alkylating agent cyclophosphamide in a case with serpiginous choroiditis and thus to contribute to the previously reported few cases showing the beneficial effect of long-term cyclophosphamide therapy for serpiginous choroiditis. Procedures: Oral cyclophosphamide therapy for 12 months in a case with unilateral active serpiginous choroiditis. Results: The active lesion responded well to long-term therapy with cyclophosphamide without recurrences and significant systemic side-effects. Conclusions: Long-term therapy with cyclophosphamide for serpiginous choroiditis is effective for improving vision and preventing recurrences

The labor market in the Great Recession: an update

Since the end of the Great Recession in mid-2009, the unemployment rate has recovered slowly, falling by only one percentage point from its peak. We find that the lackluster labor market recovery can be traced in large part to weakness in aggregate demand; only a small part seems attributable to increases in labor market frictions. This continued labor market weakness has led to the highest level of long-term unemployment in the U.S. in the postwar period, and a blurring of the distinction between unemployment and nonparticipation. We show that flows from nonparticipation to unemployment are important for understanding the recent evolution of the duration distribution of unemployment. Simulations that account for these flows suggest that the U.S. labor market is unlikely to be subject to high levels of structural long-term unemployment after aggregate demand recovers. ; Powerpoint supplement available at http://www.frbsf.org/economics/economists/wp11-29bk_supplement.pdfLabor market ; Recessions