The simple economics of risk-sharing agreements between the NHS and the pharmaceutical industry

The Janssen-Cilag proposal for a risk-sharing agreement regarding bortezomib received a welcome signal from NICE. The Office of Fair Trading report included risk-sharing agreements as an available tool for the National Health Service. Nonetheless, recent discussions have somewhat neglected the economic fundamentals underlying risk-sharing agreements. We argue here that risk-sharing agreements, although attractive due to the principle of paying by results, also entail risks. Too many patients may be put under treatment even with a low success probability. Prices are likely to be adjusted upward, in anticipation of future risk-sharing agreements between the pharmaceutical company and the third-party payer. An available instrument is a verification cost per patient treated, which allows obtaining the first-best allocation of patients to the new treatment, under the risk sharing agreement. Overall, the welfare effects of risk-sharing agreements are ambiguous, and care must be taken with their use.

R&D poverty traps

In this paper we show that the R&D effort of a country and its economic growth are highly correlated. In order to analyze this relationship, we study the nature of the researching activity. In particular, we focus on the following characteristics of research: the inherent uncertainty of researching, the existence of a wage premium associated to innovative activities, and moral hazard. Assuming that a higher R&D effort translates into a higher R&D success probability, we show that when the R&D success probability is low, the economy is not willing to bear the risk associated to R&D activities. As a consequence, few researchers are hired and the economy stays in an R&D poverty trap, a situation where the economy is stacked in a low growth environment due to the uncertainty associated with the researching activity.

R&D poverty traps

In this paper we show that the R&D effort of a country and its economic growth are highly correlated. In order to analyze this relationship, we study the nature of the researching activity. In particular, we focus on the following characteristics of research: the inherent uncertainty of researching, the existence of a wage premium associated to innovative activities, and moral hazard. Assuming that a higher R&D effort translates into a higher R&D success probability, we show that when the R&D success probability is low, the economy is not willing to bear the risk associated to R&D activities. As a consequence, few researchers are hired and the economy stays in an R&D poverty trap, a situation where the economy is stacked in a low growth environment due to the uncertainty associated with the researching activity.

Innovative milieu, micro firms and local development in Barcelona

Peer-reviewed

Computational methods for tactical simulations

Tämä taktiikan tutkimus keskittyy tietokoneavusteisen simuloinnin laskennallisiin menetelmiin, joita voidaan käyttää taktisen tason sotapeleissä. Työn tärkeimmät tuotokset ovat laskennalliset mallit todennäköisyyspohjaisen analyysin mahdollistaviin taktisen tason taistelusimulaattoreihin, joita voidaan käyttää vertailevaan analyysiin joukkue-prikaatitason tarkastelutilanteissa. Laskentamallit keskittyvät vaikuttamiseen. Mallit liittyvät vahingoittavan osuman todennäköisyyteen, jonka perusteella vaikutus joukossa on mallinnettu tilakoneina ja Markovin ketjuina. Edelleen näiden tulokset siirretään tapahtumapuuanalyysiin operaation onnistumisen todennäköisyyden osalta. Pienimmän laskentayksikön mallinnustaso on joukkue- tai ryhmätasolla, jotta laskenta-aika prikaatitason sotapelitarkasteluissa pysyisi riittävän lyhyenä samalla, kun tulokset ovat riittävän tarkkoja suomalaiseen maastoon. Joukkueiden mies- ja asejärjestelmävahvuudet ovat jakaumamuodossa, eivätkä yksittäisiä lukuja. Simuloinnin integroinnissa voidaan käyttää asejärjestelmäkohtaisia predictor corrector –parametreja, mikä mahdollistaa aika-askelta lyhytaikaisempien taistelukentän ilmiöiden mallintamisen. Asemallien pohjana ovat aiemmat tutkimukset ja kenttäkokeet, joista osa kuuluu tähän väitöstutkimukseen. Laskentamallien ohjelmoitavuus ja käytettävyys osana simulointityökalua on osoitettu tekijän johtaman tutkijaryhmän ohjelmoiman ”Sandis”- taistelusimulointiohjelmiston avulla, jota on kehitetty ja käytetty Puolustusvoimien Teknillisessä Tutkimuslaitoksessa. Sandikseen on ohjelmoitu karttakäyttöliittymä ja taistelun kulkua simuloivia laskennallisia malleja. Käyttäjä tai käyttäjäryhmä tekee taktiset päätökset ja syöttää nämä karttakäyttöliittymän avulla simulointiin, jonka tuloksena saadaan kunkin joukkuetason peliyksikön tappioiden jakauma, keskimääräisten tappioiden osalta kunkin asejärjestelmän aiheuttamat tappiot kuhunkin maaliin, ammuskulutus ja radioyhteydet ja niiden tila sekä haavoittuneiden evakuointi-tilanne joukkuetasolta evakuointisairaalaan asti. Tutkimuksen keskeisiä tuloksia (kontribuutio) ovat 1) uusi prikaatitason sotapelitilanteiden laskentamalli, jonka pienin yksikkö on joukkue tai ryhmä; 2) joukon murtumispisteen määritys tappioiden ja haavoittuneiden evakuointiin sitoutuvien taistelijoiden avulla; 3) todennäköisyyspohjaisen riskianalyysin käyttömahdollisuus vertailevassa tutkimuksessa sekä 4) kokeellisesti testatut tulen vaikutusmallit ja 5) toimivat integrointiratkaisut. Työ rajataan maavoimien taistelun joukkuetason todennäköisyysjakaumat luovaan laskentamalliin, kenttälääkinnän malliin ja epäsuoran tulen malliin integrointimenetelmineen sekä niiden antamien tulosten sovellettavuuteen. Ilmasta ja mereltä maahan -asevaikutusta voidaan tarkastella, mutta ei ilma- ja meritaistelua. Menetelmiä soveltavan Sandis -ohjelmiston malleja, käyttötapaa ja ohjelmistotekniikkaa kehitetään edelleen. Merkittäviä jatkotutkimuskohteita mallinnukseen osalta ovat muun muassa kaupunkitaistelu, vaunujen kaksintaistelu ja maaston vaikutus tykistön tuleen sekä materiaalikulutuksen arviointi.

De-escalation of commitment management strategy in IT project management methodology: case of ERP implementation project by IT consulting company

According to several surveys and observations, the percentage of successfully conducted IT projects without over-budgeting and delays in time schedule are extremely low. Many projects also are evaluated as failures in terms of delivered functionality. Nuldén (1996) compares IT projects with bad movies; after watching for 2 hours, one still tries to finish it even though one understands that it is a complete waste of time. The argument for that is 'I've already invested too much time to terminate it now'. The same happens with IT projects: sometimes the company continues wasting money on these projects for a long time, even though there are no expected benefits from these projects. Eventually these projects are terminated anyway, but until this moment, the company spends a lot. The situation described above is a consequence of “escalation of commitment” - project continuation even after a manager receives negative feedback of the project’s success probability. According to Keil and Mähring (2010), even though escalation can occur in any type of project, it is more common among complex technological projects, such as IT projects. Escalation of commitment very often results in runaway projects. In order to avoid it, managers use de-escalation strategies, which allow the resources to be used in more effective. These strategies lead to project termination or turning around, which stops the flow of wasted investments. Numbers of researches explore escalation of commitment phenomena based on experiments and business cases. Moreover, during the last decade several frameworks were proposed for de-escalation strategy. However, there is no evidence of successful implementation of the de-escalation of commitment strategy in the literature. In addition, despite that fact that IT project management methodologies are widely used in the companies, none of them cover the topic of escalation of commitment risks. At the same time, there are no researches proposing the way to implement de-escalation of commitment strategy into the existing project management methodology The research is focused on a single case of large ERP implementation project by the consulting company. Hence, the main deliverables of the study include suggestions of improvement in de-escalation methods and techniques in the project and in the company. Moreover, the way to implement these methods into existing project management methodology and into the company general policies is found.

Beta-binomial/Poisson regression models for repeated bivariate counts

We analyze data obtained from a study designed to evaluate training effects on the performance of certain motor activities of Parkinson`s disease patients. Maximum likelihood methods were used to fit beta-binomial/Poisson regression models tailored to evaluate the effects of training on the numbers of attempted and successful specified manual movements in 1 min periods, controlling for disease stage and use of the preferred hand. We extend models previously considered by other authors in univariate settings to account for the repeated measures nature of the data. The results suggest that the expected number of attempts and successes increase with training, except for patients with advanced stages of the disease using the non-preferred hand. Copyright (c) 2008 John Wiley & Sons, Ltd.

O desenvolvimento do conceito de probabilidade em pré-adolescentes e adolescentes

Este trabalho, baseado na teoria de Jean Piaget sobre o desenvolvimento do pensamento adolescente, visa continuar a mesma linha de investigação no que se refere à aquisição do conceito de probabilidade. O conceito de probabilidade na teoria piagetiana representando a intercepção do real e do possível, foi submetido, neste trabalho, a uma análise crítica e a um projeto de verificação experimental. Em termos teóricos, a crítica orientou-se para a relação entre os canais sensoriais receptores de informação e a organização do nível formal que permite elaborar relações de probabilidade. Importante papel foi atribuído ao estudo da manipulação - expressão direta da ação em seus níveis primordiais - como fator determinante de elaboração específica nas relações de probabilidade. Uma segunda vertente sociogênica do problema foi analisada em termos do nível sócio-econômico como fator que influencia o desenvolvimento do pensamento formal e especificamente a aquisição do conceito de probabilidade. Em termos de verificação experimental, constatou se a possibilidade de se definirem diversos estágios de desenvolvimento, chegando-se a classificar, de modo geral, os sujeitos em: aqueles que ainda não possuem habilidade de pensamento para solução de problema de probabilidade, aqueles que já apresentam tal habilidade, porém, são incapazes de generalização, e outros, em menor parte, que têm estabelecidas as estruturas operatórias do período lógico formal. Dentre estes grupos somente o último faz uso sistemático de estratégias corretas e corresponde aos sujeitos adolescentes do sexo masculino. Isto mostra que existe uma diferença nos resultados devido às diferenças sexuais a favor do sexo masculino e que a capacidade de lidar com relações probabilísticas se torna mais organizada e estruturada com o avanço da idade dos sujeitos. As variáveis ambientais exercem influência no rendimento do sujeito, os resultados variam de acordo com o meio socio econômico, favorecendo os de nível superior, isto é, permitindo-lhes um desenvolvimento normal.

A New Boson with a Mass of 125 GeV Observed with the CMS Experiment at the Large Hadron Collider

Conselho Nacional de Desenvolvimento Científico e Tecnológico (CNPq)

Mac protocols for linear wireless (sensor) networks

Wireless sensor networks (WSNs) consist of a large number of sensor nodes, characterized by low power constraint, limited transmission range and limited computational capabilities [1][2].The cost of these devices is constantly decreasing, making it possible to use a large number of sensor devices in a wide array of commercial, environmental, military, and healthcare fields. Some of these applications involve placing the sensors evenly spaced on a straight line for example in roads, bridges, tunnels, water catchments and water pipelines, city drainages, oil and gas pipelines etc., making a special class of these networks which we define as a Linear Wireless Network (LWN). In LWNs, data transmission happens hop by hop from the source to the destination, through a route composed of multiple relays. The peculiarity of the topology of LWNs, motivates the design of specialized protocols, taking advantage of the linearity of such networks, in order to increase reliability, communication efficiency, energy savings, network lifetime and to minimize the end-to-end delay [3]. In this thesis a novel contention based Medium Access Control (MAC) protocol called L-CSMA, specifically devised for LWNs is presented. The basic idea of L-CSMA is to assign different priorities to nodes based on their position along the line. The priority is assigned in terms of sensing duration, whereby nodes closer to the destination are assigned shorter sensing time compared to the rest of the nodes and hence higher priority. This mechanism speeds up the transmission of packets which are already in the path, making transmission flow more efficient. Using NS-3 simulator, the performance of L-CSMA in terms of packets success rate, that is, the percentage of packets that reach destination, and throughput are compared with that of IEEE 802.15.4 MAC protocol, de-facto standard for wireless sensor networks. In general, L-CSMA outperforms the IEEE 802.15.4 MAC protocol.

Estimation of a probability in inverse binomial sampling under normalized linear-linear and inverse-linear loss

Sequential estimation of the success probability p in inverse binomial sampling is considered in this paper. For any estimator pˆ , its quality is measured by the risk associated with normalized loss functions of linear-linear or inverse-linear form. These functions are possibly asymmetric, with arbitrary slope parameters a and b for pˆ

p , respectively. Interest in these functions is motivated by their significance and potential uses, which are briefly discussed. Estimators are given for which the risk has an asymptotic value as p→0, and which guarantee that, for any p∈(0,1), the risk is lower than its asymptotic value. This allows selecting the required number of successes, r, to meet a prescribed quality irrespective of the unknown p. In addition, the proposed estimators are shown to be approximately minimax when a/b does not deviate too much from 1, and asymptotically minimax as r→∞ when a=b.

Estimation of a probability in inverse binomial sampling under normalized linear-linear and inverse-linear loss

Sequential estimation of the success probability $p$ in inverse binomial sampling is considered in this paper. For any estimator $\hatvap$, its quality is measured by the risk associated with normalized loss functions of linear-linear or inverse-linear form. These functions are possibly asymmetric, with arbitrary slope parameters $a$ and $b$ for $\hatvap < p$ and $\hatvap > p$ respectively. Interest in these functions is motivated by their significance and potential uses, which are briefly discussed. Estimators are given for which the risk has an asymptotic value as $p \rightarrow 0$, and which guarantee that, for any $p \in (0,1)$, the risk is lower than its asymptotic value. This allows selecting the required number of successes, $\nnum$, to meet a prescribed quality irrespective of the unknown $p$. In addition, the proposed estimators are shown to be approximately minimax when $a/b$ does not deviate too much from $1$, and asymptotically minimax as $\nnum \rightarrow \infty$ when $a=b$.

Bare-tape scaling laws for de-orbit missions in a space debris environment

El entorno espacial actual hay un gran numero de micro-meteoritos y basura espacial generada por el hombre, lo cual plantea un riesgo para la seguridad de las operaciones en el espacio. La situación se agrava continuamente a causa de las colisiones de basura espacial en órbita, y los nuevos lanzamientos de satélites. Una parte significativa de esta basura son satélites muertos, y fragmentos de satélites resultantes de explosiones y colisiones de objetos en órbita. La mitigación de este problema se ha convertido en un tema de preocupación prioritario para todas las instituciones que participan en operaciones espaciales. Entre las soluciones existentes, las amarras electrodinámicas (EDT) proporcionan un eficiente dispositivo para el rápido de-orbitado de los satélites en órbita terrestre baja (LEO), al final de su vida útil. El campo de investigación de las amarras electrodinámicas (EDT) ha sido muy fructífero desde los años 70. Gracias a estudios teóricos, y a misiones para la demostración del funcionamiento de las amarras en órbita, esta tecnología se ha desarrollado muy rápidamente en las últimas décadas. Durante este período de investigación, se han identificado y superado múltiples problemas técnicos de diversa índole. Gran parte del funcionamiento básico del sistema EDT depende de su capacidad de supervivencia ante los micro-meteoritos y la basura espacial. Una amarra puede ser cortada completamente por una partícula cuando ésta tiene un diámetro mínimo. En caso de corte debido al impacto de partículas, una amarra en sí misma, podría ser un riesgo para otros satélites en funcionamiento. Por desgracia, tras varias demostraciones en órbita, no se ha podido concluir que este problema sea importante para el funcionamiento del sistema. En esta tesis, se presenta un análisis teórico de la capacidad de supervivencia de las amarras en el espacio. Este estudio demuestra las ventajas de las amarras de sección rectangular (cinta), en cuanto a la probabilidad de supervivencia durante la misión, frente a las amarras convencionales (cables de sección circular). Debido a su particular geometría (longitud mucho mayor que la sección transversal), una amarra puede tener un riesgo relativamente alto de ser cortado por un único impacto con una partícula de pequeñas dimensiones. Un cálculo analítico de la tasa de impactos fatales para una amarra cilindrica y de tipo cinta de igual longitud y masa, considerando el flujo de partículas de basura espacial del modelo ORDEM2000 de la NASA, muestra mayor probabilidad de supervivencia para las cintas. Dicho análisis ha sido comparado con un cálculo numérico empleando los modelos de flujo el ORDEM2000 y el MASTER2005 de ESA. Además se muestra que, para igual tiempo en órbita, una cinta tiene una probabilidad de supervivencia un orden y medio de magnitud mayor que una amarra cilindrica con igual masa y longitud. Por otra parte, de-orbitar una cinta desde una cierta altitud, es mucho más rápido, debido a su mayor perímetro que le permite capturar más corriente. Este es un factor adicional que incrementa la probabilidad de supervivencia de la cinta, al estar menos tiempo expuesta a los posibles impactos de basura espacial. Por este motivo, se puede afirmar finalmente y en sentido práctico, que la capacidad de supervivencia de la cinta es bastante alta, en comparación con la de la amarra cilindrica. El segundo objetivo de este trabajo, consiste en la elaboración de un modelo analítico, mejorando la aproximación del flujo de ORDEM2000 y MASTER2009, que permite calcular con precisión, la tasa de impacto fatal al año para una cinta en un rango de altitudes e inclinaciones, en lugar de unas condiciones particulares. Se obtiene el numero de corte por un cierto tiempo en función de la geometría de la cinta y propiedades de la órbita. Para las mismas condiciones, el modelo analítico, se compara con los resultados obtenidos del análisis numérico. Este modelo escalable ha sido esencial para la optimización del diseño de la amarra para las misiones de de-orbitado de los satélites, variando la masa del satélite y la altitud inicial de la órbita. El modelo de supervivencia se ha utilizado para construir una función objetivo con el fin de optimizar el diseño de amarras. La función objectivo es el producto del cociente entre la masa de la amarra y la del satélite y el numero de corte por un cierto tiempo. Combinando el modelo de supervivencia con una ecuación dinámica de la amarra donde aparece la fuerza de Lorentz, se elimina el tiempo y se escribe la función objetivo como función de la geometría de la cinta y las propietades de la órbita. Este modelo de optimización, condujo al desarrollo de un software, que esta en proceso de registro por parte de la UPM. La etapa final de este estudio, consiste en la estimación del número de impactos fatales, en una cinta, utilizando por primera vez una ecuación de límite balístico experimental. Esta ecuación ha sido desarollada para cintas, y permite representar los efectos tanto de la velocidad de impacto como el ángulo de impacto. Los resultados obtenidos demuestran que la cinta es altamente resistente a los impactos de basura espacial, y para una cinta con una sección transversal definida, el número de impactos críticos debidos a partículas no rastreables es significativamente menor. ABSTRACT The current space environment, consisting of man-made debris and tiny meteoroids, poses a risk to safe operations in space, and the situation is continuously deteriorating due to in-orbit debris collisions and to new satellite launches. Among these debris a significant portion is due to dead satellites and fragments of satellites resulted from explosions and in-orbit collisions. Mitigation of space debris has become an issue of first concern for all the institutions involved in space operations. Bare electrodynamic tethers (EDT) can provide an efficient mechanism for rapid de-orbiting of defunct satellites from low Earth orbit (LEO) at end of life. The research on EDT has been a fruitful field since the 70’s. Thanks to both theoretical studies and in orbit demonstration missions, this technology has been developed very fast in the following decades. During this period, several technical issues were identified and overcome. The core functionality of EDT system greatly depends on their survivability to the micrometeoroids and orbital debris, and a tether can become itself a kind of debris for other operating satellites in case of cutoff due to particle impact; however, this very issue is still inconclusive and conflicting after having a number of space demonstrations. A tether can be completely cut by debris having some minimal diameter. This thesis presents a theoretical analysis of the survivability of tethers in space. The study demonstrates the advantages of tape tethers over conventional round wires particularly on the survivability during the mission. Because of its particular geometry (length very much larger than cross-sectional dimensions), a tether may have a relatively high risk of being severed by the single impact of small debris. As a first approach to the problem, survival probability has been compared for a round and a tape tether of equal mass and length. The rates of fatal impact of orbital debris on round and tape tether, evaluated with an analytical approximation to debris flux modeled by NASA’s ORDEM2000, shows much higher survival probability for tapes. A comparative numerical analysis using debris flux model ORDEM2000 and ESA’s MASTER2005 shows good agreement with the analytical result. It also shows that, for a given time in orbit, a tape has a probability of survival of about one and a half orders of magnitude higher than a round tether of equal mass and length. Because de-orbiting from a given altitude is much faster for the tape due to its larger perimeter, its probability of survival in a practical sense is quite high. As the next step, an analytical model derived in this work allows to calculate accurately the fatal impact rate per year for a tape tether. The model uses power laws for debris-size ranges, in both ORDEM2000 and MASTER2009 debris flux models, to calculate tape tether survivability at different LEO altitudes. The analytical model, which depends on tape dimensions (width, thickness) and orbital parameters (inclinations, altitudes) is then compared with fully numerical results for different orbit inclinations, altitudes and tape width for both ORDEM2000 and MASTER2009 flux data. This scalable model not only estimates the fatal impact count but has proved essential in optimizing tether design for satellite de-orbit missions varying satellite mass and initial orbital altitude and inclination. Within the frame of this dissertation, a simple analysis has been finally presented, showing the scalable property of tape tether, thanks to the survivability model developed, that allows analyze and compare de-orbit performance for a large range of satellite mass and orbit properties. The work explicitly shows the product of tether-to-satellite mass-ratio and fatal impact count as a function of tether geometry and orbital parameters. Combining the tether dynamic equation involving Lorentz drag with space debris impact survivability model, eliminates time from the expression. Hence the product, is independent of tether de-orbit history and just depends on mission constraints and tether length, width and thickness. This optimization model finally led to the development of a friendly software tool named BETsMA, currently in process of registration by UPM. For the final step, an estimation of fatal impact rate on a tape tether has been done, using for the first time an experimental ballistic limit equation that was derived for tapes and accounts for the effects of both the impact velocity and impact angle. It is shown that tape tethers are highly resistant to space debris impacts and considering a tape tether with a defined cross section, the number of critical events due to impact with non-trackable debris is always significantly low.

Bayesian classification with Gaussian processes

We consider the problem of assigning an input vector bfx to one of m classes by predicting P(c|bfx) for c = 1, ldots, m. For a two-class problem, the probability of class 1 given bfx is estimated by s(y(bfx)), where s(y) = 1/(1 + e^-y). A Gaussian process prior is placed on y(bfx), and is combined with the training data to obtain predictions for new bfx points. We provide a Bayesian treatment, integrating over uncertainty in y and in the parameters that control the Gaussian process prior; the necessary integration over y is carried out using Laplace's approximation. The method is generalized to multi-class problems (m >2) using the softmax function. We demonstrate the effectiveness of the method on a number of datasets.

Bayesian classification with Gaussian processes

We consider the problem of assigning an input vector to one of m classes by predicting P(c|x) for c=1,...,m. For a two-class problem, the probability of class one given x is estimated by s(y(x)), where s(y)=1/(1+e-y). A Gaussian process prior is placed on y(x), and is combined with the training data to obtain predictions for new x points. We provide a Bayesian treatment, integrating over uncertainty in y and in the parameters that control the Gaussian process prior the necessary integration over y is carried out using Laplace's approximation. The method is generalized to multiclass problems (m>2) using the softmax function. We demonstrate the effectiveness of the method on a number of datasets.