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Intuition Can’t Beat Experimentation

by Professors Ayelet Gneezy and Uri Gneezy In the summer of 2009, we received a call from Joe, a winery owner in Temecula. Joe asked for our help pricing his wines – clearly one of the most important decisions he needs to make. We were happy to go visit Joe, taste some wines and possibly help him in the process. When we asked him how he’d chosen prices in the past, we encountered the usual suspects: looking at how other wineries price similar wines, intuition, inertia, etc. Joe expected the business professors to come over, look around, do some quick…

Alternative TV

Innovation in the television industry creates uncertainty for content creators and distributors by Jarrod Hammes For many U.S. households, it is difficult to imagine a world without television. In fact, 115.9 million homes have at least one television, with an average of two-and-a-half per home. Broadcasters, content producers and distributors seek to satisfy Americans’ 35.6 hours per week consumption habit with an ever-growing array of channels and increasing diversity of programming. In 2009, TV industry analysts and advertising pundits noted signs of volatility as traditional advertising revenues began to detour to a variety of Internet video providers, including YouTube and…

HITECH Chum

A meaningful disruption of the U.S. health care system by brad M. Pruitt, M.D. Palomar Pomerado Health Chief Medical Information Officer, Benjamin Kanter, M.D., stands among thousands of paper patient records with the new MIAA application on his Android mobile device. MIAA will provide physicians with real-time patient information, anytime, anywhere The mobile health (mHealth) revolution is now fueled by the federal government’s unprecedented Health Information Technology for Economic and Clinical Health (HITECH) Act to help health care providers transition from paper-based to electronic health records, which will ultimately report to a national health care database. With billions of federal…

Accelerating Next-Generation Biofuels

Biofuel developers must find the best way to produce the alternative-energy source and form a viable business model to reach widespread use by Martin Sabarsky, J.D. Among the high-profile approaches addressing the need for large-scale renewable energy resources, biofuels have attracted significant attention. The enthusiasm of policymakers and investors for first-generation biofuels from crops such as ethanol from corn and biodiesel from soybeans waned after peaking in 2006 and 2007. However, increased media and investor attention is now being paid to technologies and companies involved in the development of advanced biofuels. Those technologies include cellulosic ethanol, as well as biofuels based…

The mHealth Revolution

Industry insiders offer their insight into the way new technologies will change how health care is delivered by Brad M. Pruitt, M.D.  Last year was considered the breakout year for wireless and mobile health, also known as “mHealth.” On Feb. 17, 2009, the Obama administration announced plans to incentivize health care providers with nearly $23 billion in grants to implement health information technology (IT) systems.1 There are now over 10,000 medica l applications for the iPhone, BlackBerry, Palm, Android and Nokia devices. According to McKinsey & Company, global mHealth market opportunities are estimated to be $50 billion in 2010. The CTIA,…

Wireless Technology Poised to Transform Health Care

New companies continue to develop exciting applications, but will consumers and the health care field accept the costs and risks to privacy? by Andrea Jackson After a decade driven by the work of a small group of early-stage companies and visionaries within the health care and telecommunications worlds, wireless health exploded into mainstream consciousness in 2009. Despite the rapid increase in awareness of its value, proliferation of supporting technology and industry optimism about the potential market, significant challenges stand in the way of widespread adoption. Wireless technology can enable dramatic change in the way health care is delivered, but health…

Solar-Empowered Property Owners

New purchase and lease options for solar-generated power are making the alternative-energy source more attractive by Trang T. Nguyen & Michael D. Alston, Ph.D. I nnovation in the financing of renewable energy installations for residential and commercial property has lowered the hurdles facing property owners considering adopting solar energy. Long-term financing choices involving fiscal incentives not only make it cheaper for property owners to access solar-generated electricity, but offer more than one way to “go solar.” When presented with clear, customized, cost-benefit analyses of the tradeoffs of alternative energy installations, the rate of adoption of solar-energy systems by property owners…

Venture Capital: Current Challenges and Future Directions

As venture capital sources slow their investments, experts see new models emerging to help fill the gap in funding by John Douglas, M.D. & Marc Hermsmeyer Venture capital is a type of financing for new companies with high growth potential that is considered the economic lifeblood of technological development. This financing is one of the driving forces behind California’s economy. Companies supported by venture capital in California employ roughly 4 million people per year and produce revenues close to $1 trillion,1 accounting for more than half the state’s gross product.2 Venture capital firms generally receive returns on their investments when…

Innovating Our Way Out of a Crisis

Can research on operations and innovation benefit (University of) California? by Vish Krishnan, Sc.D. How quickly time flies. It was two years ago that Maria Shriver, California’s first lady, headlined a rally for soon-to-be President Barack Obama at UCLA with the following words, “If Barack Obama were a state, he’d be California. I mean think about it. Diverse. Open. Smart. Independent. Bucks tradition. Innovative. Inspiring Dreamer. Leader.” That was a powerful endorsement of Obama’s candidacy and a nice pitch for California. The description resonated around the world because it is not far from the image of the state both its…

Perspectives on Risk

Nobel laureate and  industry expert offer their ideas on risk management, financial derivatives and the future of the economy. by Tony Cusano In recent years, it has become clear that the collapse of century old firms, including Lehman Brothers, was caused by a disregard for risk throughout the global financial system. As the dust settles, it is apparent that the events of 2008 to 2009 will likely become a chapter in the history books rather than just a few pages. Accordingly, we found it fitting to interview Harry Markowitz and Ross Valkanov, two Rady professors who have spent the majority…