Bundling and competition for slots: On the portfolio effects of bundling

We consider competition among sellers when each of them sells a portfolio ofdistinct products to a buyer having limited slots. We study how bundling affectscompetition for slots. Under independent pricing, equilibrium often does not existand hence the outcome is often inefficient. When bundling is allowed, each sellerhas an incentive to bundle his products and an efficient equilibrium always exists.Furthermore, in the case of digital goods, all equilibria are efficient if slotting contracts are prohibited. We also identify portfolio effects of bundling and analyze theconsequences on horizontal mergers. Finally, we derive clear-cut policy implications.

Trade, firm selection, and innovation: the competition channel

The availability of rich firm-level data sets has recently led researchers to uncover new evidence on the effects of trade liberalization. First, trade openness forces the least productive firms to exit the market. Secondly, it induces surviving firms to increase their innovation efforts and thirdly, it increases the degree of product market competition. In this paper we propose a model aimed at providing a coherent interpretation of these findings. We introducing firm heterogeneity into an innovation-driven growth model, where incumbent firms operating in oligopolistic industries perform cost-reducing innovations. In this framework, trade liberalization leads to higher product market competition, lower markups and higher quantity produced. These changes in markups and quantities, in turn, promote innovation and productivity growth through a direct competition effect, based on the increase in the size of the market, and a selection effect, produced by the reallocation of resources towards more productive firms. Calibrated to match US aggregate and firm-level statistics, the model predicts that a 10 percent reduction in variable trade costs reduces markups by 1:15 percent, firm surviving probabilities by 1 percent, and induces an increase in productivity growth of about 13 percent. More than 90 percent of the trade-induced growth increase can be attributed to the selection effect.

Product differentiation, competitive pressure and the effects of innovation on the success and survivability of firms in oligopoly markets

In a recent paper Tishler and Milstein (2009) fi…nd that increased competition may increase aggregate R&D spending while market output decreases. Therefore, they obtain the surprising result that R&D spending is excessive when competition becomes intense. Their result is based on the standard linear demand function for differentiated products introduced by Bowley (1924) where decreased product differentiation is interpreted as more competitive pressure. In this paper I show that at an aggregate level this interpretation is problematic because equilibrium effects are dominated by a demand reduction effect. A slight modifi…cation of the standard demand function eliminates this effect. For the Tishler and Milstein (2009) setting it is shown that then increased competition increases both R&D spending and aggregate market output. Therefore, at least for consumers, more intense competition increases welfare. Journal of Economic Literature Classi…fication Numbers: D43, L1, O3. Keywords: Oligopoly markets, Product differentiation, Competitive pressure.

The effect of atmospheric absorption of sunlight on the runaway greenhouse point

The longwave emission of planetary atmospheres that contain a condensable absorbing gas in the infrared (i.e., longwave), which is in equilibrium with its liquid phase at the surface, may exhibit an upper bound. Here we analyze the effect of the atmospheric absorption of sunlight on this radiation limit. We assume that the atmospheric absorption of infrared radiation is independent of wavelength except within the spectral width of the atmospheric window, where it is zero. The temperature profile in radiative equilibrium is obtained analytically as a function of the longwave optical thickness. For illustrative purposes, numerical values for the infrared atmospheric absorption (i.e., greenhouse effect) and the liquid vapor equilibrium curve of the condensable absorbing gas refer to water. Values for the atmospheric absorption of sunlight (i.e., antigreenhouse effect) take a wide range since our aim is to provide a qualitative view of their effects. We find that atmospheres with a transparent region in the infrared spectrum do not present an absolute upper bound on the infrared emission. This result may be also found in atmospheres opaque at all infrared wavelengths if the fraction of absorbed sunlight in the atmosphere increases with the longwave opacity

The impact of the reference price system on the pharmaceutical market: A theoretical approach

This article analyses the impact of the reference pricesystem on the price-setting strategies of thepharmaceutical firms and on the level of generic usage.This model is the first to take explicitly into accountthe impact of the reference price mechanism on the levelof competition between brand-name and generic drugs andnational pharmaceutical spending. We consider aduopolistic model with one firm producing the brand-namedrug, whose patent has already expired, and the otherproducing the corresponding generic version. We work ina partial equilibrium framework where firms set pricessequentially and consumers face heterogeneous switchingcosts.We show that brand producers compensate thedecline of profits by selling greater quantities insteadof charging higher prices, thus fostering pricecompetition in the pharmaceutical market. This result isa consequence of both the assumption of a verticallydifferentiated model and the introduction of thereference price system.

On the receiver pays principle

This paper extends the theory of network competition betweentelecommunications operators by allowing receivers to derive a surplusfrom receiving calls (call externality) and to affect the volume ofcommunications by hanging up (receiver sovereignty). We investigate theextent to which receiver charges can lead to an internalization of thecalling externality. When the receiver charge and the termination(access) charge are both regulated, there exists an e±cient equilibrium.Effciency requires a termination discount. When reception charges aremarket determined, it is optimal for each operator to set the prices foremission and reception at their off-net costs. For an appropriately chosentermination charge, the symmetric equilibrium is again effcient. Lastly,we show that network-based price discrimination creates strong incentivesfor connectivity breakdowns, even between equal networks.

Ab initio study of NOx compounds adsorption on SnO2 surface

An ab initio study of the adsorption processes on NOx compounds on (1 1 0) SnO2 surface is presented with the aim of providing theoretical hints for the development of improved NOx gas sensors. From first principles calculations (DFT¿GGA approximation), the most relevant NO and NO2 adsorption processes are analyzed by means of the estimation of their adsorption energies. The resulting values and the developed model are also corroborated with experimental desorption temperatures for NO and NO2, allowing us to explain the temperature-programmed desorption experiments. The interference of the SO2 poisoning agent on the studied processes is discussed and the adsorption site blocking consequences on sensing response are analyzed.

Influence of hydrodynamic interactions on the adsoption process of large particles

We have studied the adsorption process of non-Brownian particles on a line. Our work differs from previously proposed models in that we have incorporated hydrodynamic interactions between the incoming particles and the preadsorbed particles as well as the surface. We then numerically analyze the effect of these interactions on quantities related to the adsorption process. Comparing our model to the ballistic deposition model (BM) shows a significant discrepancy in the pair correlation function. These results can explain some differences between recent experiments and BM predictions. Finally, the limitations of the applicability of BM are addressed.

Influence of emergence timing of weeds on the establishment of woody natives and ground cover species

Les invasions biològiques són produïdes per espècies transportades per l'home fora de la regió d'origen a altres regions on s'estableixen i expandeixen. Són actualment de les majors causes de perduda de biodiversitat, amb el canvi d'usos del sòl, tret rellevant en zones insulars. Comprendre mecanismes de competència amb les espècies autòctones és clau per gestionar el problema. L’experiment evidencia diferències de creixement de 7 plantes natives australianes (3 espècies d’eucaliptus, 3 espècies d’acàcia, 1 pasturatge natiu), competint intraespecífica (entre mateixa espècie) i interespecíficament (acàcies o eucaliptus convivint amb pasturatge natiu) plantejant tres tractaments (sense males herbes, males herbes i males herbes a posteriori) per definir la naturalesa de la interacció dels diferents tipus funcionals d'espècies. S’analitzen tendències temporals de creixement de plàntules, així com la supervivència. S’ha detectat una moderada correlació entre taxes de creixement d’espècies i mida de la llavor, (p ≈ 0.6), així com una correlació entre la supervivència i la humitat del sòl (p ≈ 0.5); efectes estacionals. A curt termini i en escenari de primavera la convivència amb males herbes reporta creixement nul. Tractaments sense males herbes, presenten major supervivència en escenaris en competència interespecífica. A llarg termini les espècies amb major supervivència són les que conviuen amb pasturatge natiu i sense males herbes, indicant un efecte beneficiós en espècies millor adaptades a la sequera (E. loxophleba).

Effects of crop and weed densities on the interactions between barley and Lolium rigidum in several Mediterranean locations

The effects of both barley and Lolium rigidum densities on weed growth and spike production and on crop yield were examined in five field experiments carried out in the Mediterranean drylands of Spain and Western Australia. The aim was to check the consistency of the competitiveness of the crop in different environmental and management conditions. L. rigidum reduced barley yields in most of the experiments (between 0 and 85%), the number of ears per m2 being the most affected. It was found that increasing the barley seeding rate did not reduce the crop losses but did limit weed biomass (between 5 and 61%) and spike production (between 24 and 85%). The variability observed in crop yield losses between sites and seasons was related to rainfall at the beginning of the season. The most sensitive component of yield to weed competition was the number of ears per plant.

Research on the suitability of organosolv semi-chemical triticale fibers as reinforcement for recycled hdpe composites

The main objective of this research was to study the feasibility of incorporating organosolv semi-chemical triticale fibers as the reinforcing element in recycled high density polyethylene (HDPE). In the first step, triticale fibers were characterized in terms of chemical composition and compared with other biomass species (wheat, rye, softwood, and hardwood). Then, organosolv semi-chemical triticale fibers were prepared by the ethanolamine process. These fibers were characterized in terms of its yield, kappa number, fiber length/diameter ratio, fines, and viscosity; the obtained results were compared with those of eucalypt kraft pulp. In the second step, the prepared fibers were examined as a reinforcing element for recycled HDPE composites. Coupled and non-coupled HDPE composites were prepared and tested for tensile properties. Results showed that with the addition of the coupling agent maleated polyethylene (MAPE), the tensile properties of composites were significantly improved, as compared to non-coupled samples and the plain matrix. Furthermore, the influence of MAPE on the interfacial shear strength (IFSS) was studied. The contributions of both fibers and matrix to the composite strength were also studied. This was possible by the use of a numerical iterative method based on the Bowyer-Bader and Kelly-Tyson equations

Influence of EfOM on the oxidation of micropollutants by Ozone and UV/H2O2 in secondary effluents

The aim of this work was to study the influence of effluent organic matter (EfOM) on micropollutants removal by ozone and UV/H2O2. To perform the experiments, deionized water and municipal secondary effluents (SE) were artificially contaminated with atrazine (ATZ) and treated by the two proposed methods. ATZ concentration, COD and TOC were recorded along the reaction time and used to evaluate EfOM effect on the system efficiency. Results demonstrate that the presence of EfOM can significantly reduce the micropollutant removal rate due to competition of EfOM components to react with radicals and/or molecular ozone. The hydroxyl radical scavenging caused by EfOM was quantified as well as the contribution of molecular ozone and �OH radicals during the ozonation of SE. EfOM components promoted higher inhibition of ATZ oxidation by hydroxyl radicals than by molecular ozone.

On the Rule of Mixtures for Predicting Stress-Softening and Residual Strain Effects in Biological Tissues and Biocompatible Materials

In this work, we use the rule of mixtures to develop an equivalent material model in which the total strain energy density is split into the isotropic part related to the matrix component and the anisotropic energy contribution related to the fiber effects. For the isotropic energy part, we select the amended non-Gaussian strain energy density model, while the energy fiber effects are added by considering the equivalent anisotropic volumetric fraction contribution, as well as the isotropized representation form of the eight-chain energy model that accounts for the material anisotropic effects. Furthermore, our proposed material model uses a phenomenological non-monotonous softening function that predicts stress softening effects and has an energy term, derived from the pseudo-elasticity theory, that accounts for residual strain deformations. The model’s theoretical predictions are compared with experimental data collected from human vaginal tissues, mice skin, poly(glycolide-co-caprolactone) (PGC25 3-0) and polypropylene suture materials and tracheal and brain human tissues. In all cases examined here, our equivalent material model closely follows stress-softening and residual strain effects exhibited by experimental data