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We were able to define the critical care product line, and we were able to demonstrate profitability through an analysis of revenue and expenses related to critical care services. Our experience suggests that the concept of critical care as a product line, in addition to a hospital service, may lead to a useful analysis of this new discipline. This plan provided a rational foundation for development of the operating and capital budgets for the health system.

A bidding situation in which there is uncertainty about the value of the item of interest is modeled. The uncertainty is modeled in probabilistic terms, and the model allows the errors of estimation (the differences between expected values and the actual value) of the bidders to be dependent. The effect of this dependence on the “winner's curse” (the tendency for the highest bidder to be one who has overvalued the item) is studied, and optimal bidding strategies are determined.

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