Business, Government & the International Economy
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- January 2021
- Case
Hester Pharmaceuticals (A): A Pricing Dilemma
By: Dante Roscini and John MaskoIn August 2019, the leadership of Hester Pharmaceuticals (Hester) had a problem. Italy promised to be a key market for their new breakthrough oncology drug Akrozumab, but for almost two years, its single-payer healthcare system had been unable to agree with Hester on a price. With only a few years before a competing drug to Akrozumab was due to hit the market, company leaders felt mounting pressure to compromise with Italian negotiators. At the same time, they realized that compromising on a low price might jeopardize the higher prices Hester had already negotiated with other European nations, if these countries bought up extra supply from Italy or referenced Italy’s low price when they renegotiated their own prices the following year. Should Hester settle for a low price, stall for more time, or walk away? This case introduces students to the process of bringing new prescription drugs to market and the factors that go into pricing drugs in both single-payer and multi-payer healthcare systems. Students will wrestle with the complex strategy behind pricing their drugs internationally.
- January 2021
- Case
Hester Pharmaceuticals (A): A Pricing Dilemma
By: Dante Roscini and John MaskoIn August 2019, the leadership of Hester Pharmaceuticals (Hester) had a problem. Italy promised to be a key market for their new breakthrough oncology drug Akrozumab, but for almost two years, its single-payer healthcare system had been unable to agree with Hester on a price. With only a few years before a competing drug to Akrozumab was due to...
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- January 2021
- Case
Stagflation: the 1970s and the Crisis of the Postwar System
By: Jeremy Friedman and Jonathan Schlefer- January 2021
- Case
Stagflation: the 1970s and the Crisis of the Postwar System
By: Jeremy Friedman and Jonathan Schlefer -
- 2020
- Working Paper
Hate Crime Increases with Minoritized Group Rank
By: Mina Cikara, Vasiliki Fouka and Marco TabelliniPeople are on the move in unprecedented numbers across the globe. How does migration affect local intergroup dynamics? In contrast to accounts that emphasize stereotypical features of groups as determinants of their treatment, we propose the social group reference dependence hypothesis: violence and negative attitudes toward each minoritized group will depend on the number and size of other minoritized groups in a community. Specifically, as groups increase in rank in their relative size (e.g., to largest minority within a community), discriminatory behavior and attitudes toward them should increase accordingly. We test this hypothesis across U.S. counties between 1990 and 2010. Consistent with this prediction we find that, as Black, Hispanic/Latinx, Asian, and Arab populations increase in rank relative to one another, they become more likely to be targeted with hate crimes and more negative attitudes. The rank effect holds above and beyond group size/proportion, growth rate, and a number of other alternative explanations. This framework makes novel predictions about how demographic shifts may affect coalitional structures in the coming years and helps explain previous findings in the literature. More broadly, our results complement the existing literature by indicating that attitudes and behaviors toward social categories are not fixed or driven only by features associated with those groups, such as stereotypes.
- 2020
- Working Paper
Hate Crime Increases with Minoritized Group Rank
By: Mina Cikara, Vasiliki Fouka and Marco TabelliniPeople are on the move in unprecedented numbers across the globe. How does migration affect local intergroup dynamics? In contrast to accounts that emphasize stereotypical features of groups as determinants of their treatment, we propose the social group reference dependence hypothesis: violence and negative attitudes toward each minoritized group...
About the Unit
The BGIE Unit conducts research on, and teaches about, the economic, political, social, and legal environment in which business operates. The Unit includes scholars trained in economics, political science, and history; in its work, it draws on perspectives from all three of these disciplines.
The following demonstrates one way of classifying the approaches the Unit takes to learning and teaching.
- The Unit examines the “rules” and policies established by government and other non-business institutions that affect business in the United States.
- The Unit turns to history to understand the origins of today’s business environment as well as some of the alternatives that have emerged from time to time.
- The Unit examines other countries’ business environments and their historical development.
- The BGIE group is deeply interested in the impact of globalization and the way rules are emerging to govern international economic transactions as globalization proceeds.
Recent Publications
Hester Pharmaceuticals (A): A Pricing Dilemma
- January 2021 |
- Case |
- Faculty Research
Stagflation: the 1970s and the Crisis of the Postwar System
- January 2021 |
- Case |
- Faculty Research
Hate Crime Increases with Minoritized Group Rank
- 2020 |
- Working Paper |
- Faculty Research
Made In Space, Expectations Management, and the Business of In-Space Manufacturing
- December 2020 |
- Case |
- Faculty Research
The Political Effects of Immigration: Culture or Economics?
- 2020 |
- Working Paper |
- Faculty Research
Faith and Assimilation: Italian Immigrants in the U.S.
- 2020 |
- Working Paper |
- Faculty Research
Party-State Capitalism in China
- 2020 |
- Working Paper |
- Faculty Research
Harvard Business Publishing
Seminars & Conferences
There are no upcoming events.