Private marketing

In summaiy, the main points in this controversy are first, the contention by energy consei vation proponents that numerous investment opportunities currently exist to reduce energy costs. Further, these investment opportunities would meet the investment criteria noted above. Although there are lew challenges to this contention, it is not the center of controversy. Conservationists contend that the failure of private markets to make these investments is indicative of serious inefficiencies. Some economists dispute this contention and proi ide explanations ol why normal, well-functioning markets may defer on energy-efficient investments. 

For collective exposures, government should create ambient quality standards to achieve the same cost-versus-health balance observed in private market decisions. The government should then auction emissions property rights to the highest bidders and distribute the proceeds to all citizens equally. 

Markets often provide suboptimal levels of product information because entrepreneurs who develop information have difficulty restricting its use to those who pay for it (Shavell 1987,54). Although some recent scholarship challenges that idea (Kealey 1996), assume that basic epidemiological research requires public funding. Once that information exists, can private markets disseminate it ... 

Because radon exposure varies widely from home to home, exposure information is a private rather than a public good, and a market developed to provide it. Basic information about the risks of radon exposure might be suboptimally provided by private markets, but the determination of exposure and the development of remediation plans are private goods that markets provide. 

The ability of markets to provide exposure information is affected by how exposure varies across households. If fhe variance is large, as it is with radon in the Northeast, private markets for exposure informafion develop quite easily. If the variance is small, collectively provided exposure information is more efficient because, once one household pays to ascertain air and water quality, other households will not contribute to the costs of acquiring informafion. 

Whaf are the consequences of exposure Basic epidemiological information has classic public-good attributes. Those who conduct basic research have difficulty restricting its consumption to those who contributed to the research costs. But once it is developed, private markets disseminate the knowledge through newspapers, magazines, and even television. 

FIGURE 24.1 Capital raised by combinatorial chemistry companies. Ever since the field of combinatorial chemistry made its first corporate appearance in 1990, its ability to raise capital in the public and private markets has increased steadily over the years. By 1997, the field had raised 100 times more capital than in 1990. Source Biovistar (www.biovista.com). 

Prices of imported pharmaceuticals are regulated in such a way that the maximum allowed price to the pharmacy is linked to the price of a product with similar active substance in Europe, irrespective of the exporting country. More exactly, this price is the average of pharmacy prices in Belgium, France, Germany and Britain or that in Holland, whichever of these two is lower, plus 1.5 percent. This applies to the private market. In fact, the institutional market constitutes more than 80 percent of the pharmaceuticals market. As a rule, prices pcdd by the healthcare organizations are substantially lower. As a result, the Israeli pharmaceuticals market is highly competitive. 

Bodde believes that public policy is difficult to tailor to the strands of opportunities entrepreneurs follow. Perhaps the strongest policy need, therefore, is constancy of intent—a set of public priorities that are likely to stay in place for the 10-year planning horizon of the entrepreneurs and their investors. Entrepreneurs can then direct their investments accordingly. Other effective policies would seek to align public needs with private markets, allowing the societal preferences for clean air and fuel security to be expressed in customer preferences as well. 

To be sure, public policy will always remain a secondary stimulant to entrepreneurship, relative to the primary rewards of the private market. But, even within this inherent limitation, improvements are possible and need to be made. 

To answer these questions, two good metrics of the industry are presented here that focus on macro factors, rather than micro businesss conditions and circumstances. The first such indicator is the ability of combinatorial chemistry to raise capital in the public and private markets, excluding any contributions from strategic alliances and collaborations. Thought of in a different way, this metric is a direct reflection of the short-, medium-, and long-term confidence that combinatorial chemistry can instill in sophisticated and critical investors, either in... 

SO2 permits by comparing the price of permits auctioned by EPA between 1993 and 1997 with private market indices. Joskow et al. (1998) find that by the end of 1994 these prices were virtually identical and thereby conclude that the private market for tradable permits was relatively efficient. Schmalensee et al. (1998) also conclude that the private market for tradable permits was relatively efficient by noting the growth in the level of the trading volume in the market 1.6 million, 4.9 million, and 5.1 million allowances were traded in 1995, 1996, and 1997, respectively. 

The shift from the highly structured gas world of government-backed bilateral, fixed-price contracts to a new world of private, market-related contracts raises questions about national security of supply. Private sector participants have different interests from countries they cannot be expected to consider automatically the energy security concerns of client nations as they are driven mainly by commercial considerations. 

Interviewee 28 advertised his private markets sometimes as gourmet and sometimes as organic (Taylor, 2003). Indeed, many interviewees expressed concerns over the verifiability of producer claims, whether at established, new or private markets. Interviewee 30 explained that it is up to the consumer to follow up claims of authenticity made by stall operators at farmers markets, and while... 

May imply significant governmental intervention in private markets... 

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