Two-production-period in a duopoly with nonprofit and for-profit firms

We investigate endogenous roles in a competition between a nonprofit firm and a for-profit firm in a homogeneous goods market, by allowing two production periods. We find that the Cournot-type equilibrium and one Stackelberg-type equilibrium where the nonprofit firm becomes the follower exist; however, another tackelberg-type equilibrium where the nonprofit firm becomes the leader does not exist.

A learning environment for robotic production line simulation

This paper presents a framework for a robotic production line simulation learning environment using Autonomous Ground Vehicles (AGV). An eLearning platform is used as interface with the simulator. The objective is to introduce students to the production robotics area using a familiar tool, an eLearning platform, and a framework that simulates a production line using AGVs. This framework allows students to learn about robotics but also about several areas of industrial management engineering without requiring an extensive prior knowledge on the robotics area. The robotic production line simulation learning environment simulates a production environment using AGVs to transport materials to and from the production line. The simulator allows students to validate the AGV dynamics and provides information about the whole materials supplying system which includes: supply times, route optimization and inventory management. The students are required to address several topics such as: sensors, actuators, controllers and an high level management and optimization software. This simulator was developed with a known open source tool from robotics community: Player/Stage. This tool was extended with several add-ons so that students can be able to interact with a complex simulation environment. These add-ons include an abstraction communication layer that performs events provided by the database server which is programmed by the students. An eLearning platform is used as interface between the students and the simulator. The students can visualize the effects of their instructions/programming in the simulator that they can access via the eLearning platform. The proposed framework aims to allow students from different backgrounds to fully experience robotics in practice by suppressing the huge gap between theory and practice that exists in robotics. Using an eLearning platform eliminates installation problems that can occur from different computers software distribution and makes the simulator accessible by all students at school and at home.

Measurement of exclusive γγ→ℓ+ℓ− production in proton--proton collisions at s√=7 TeV with the ATLAS detector

This Letter reports a measurement of the exclusive γγ→ℓ+ℓ−(ℓ=e,μ) cross-section in proton--proton collisions at a centre-of-mass energy of 7 TeV by the ATLAS experiment at the LHC, based on an integrated luminosity of 4.6 fb−1. For the electron or muon pairs satisfying exclusive selection criteria, a fit to the dilepton acoplanarity distribution is used to extract the fiducial cross-sections. The cross-section in the electron channel is determined to be σexcl.γγ→e+e−=0.428±0.035(stat.)±0.018(syst.) pb for a phase-space region with invariant mass of the electron pairs greater than 24 GeV, in which both electrons have transverse momentum pT>12 GeV and pseudorapidity |η|<2.4. For muon pairs with invariant mass greater than 20 GeV, muon transverse momentum pT>10 GeV and pseudorapidity |η|<2.4, the cross-section is determined to be σexcl.γγ→μ+μ−=0.628±0.032(stat.)±0.021(syst.) pb. When proton absorptive effects due to the finite size of the proton are taken into account in the theory calculation, the measured cross-sections are found to be consistent with the theory prediction.

Parameter identification of the fermentative production of fructo-oligosaccharides by Aureobasidium pullulans

In this study, a mathematical model for the production of Fructo-oligosaccharides (FOS) by Aureobasidium pullulans is developed. This model contains a relatively large set of unknown parameters, and the identification problem is analyzed using simulation data, as well as experimental data. Batch experiments were not sufficiently informative to uniquely estimate all the unknown parameters, thus, additional experiments have to be achieved in fed-batch mode to supplement the missing information. © 2015 IEEE.

Conceptual Foundations of Modelling of Innovative Production Projects

At the moment there is a lack of methodological approaches to formalization of management of innovative projects relating to production systems, as well as to adaptation and practical use of the existing approaches. This article is about one potential approach to the management of innovative projects, which makes the building of innovative process models possible based on objective approach. It outlines the frameworks for the building of innovative project models, and describes the method of transition from conceptual modelling to innovative project management. In this case, the model alone and together with parameters used for evaluation of the project may be unique and depends on the special features of the project, preferences of decision-making person, and production and economic system in which it is to be implemented. Unlike existing approaches, this concept does not place any restrictions on types of models and makes it possible to take into account the specificities of economic and production systems. Principles embodied in the model allow its usage as a basis for simulation model to be used in one of specialized simulation systems, as well as for information system providing information support of decision-making process in production and economic systems both newly developed by the company (enterprise) and designed on the basis of available information systems that interact through the exchange of data. In addition, this article shows that the development of conceptual foundations of innovative project management in the economic and production systems is inseparable from the development of the theory of industrial control systems, and their comprehensive study may be reduced to a set of elements represented as certain algorithms, models and evaluations. Thus, the study of innovative process may be conducted in both directions: from general to particular, and vice versa.

Increasing quasiconcave production and utility functions with diminishing returns to scale

In microeconomic analysis functions with diminishing returns to scale (DRS) have frequently been employed. Various properties of increasing quasiconcave aggregator functions with DRS are derived. Furthermore duality in the classical sense as well as of a new type is studied for such aggregator functions in production and consumer theory. In particular representation theorems for direct and indirect aggregator functions are obtained. These involve only small sets of generator functions. The study is carried out in the contemporary framework of abstract convexity and abstract concavity.

Solovian and New Growth Theory from the Perspective of Allyn Young on Macroeconomic Increasing Returns

This paper evaluates, from an Allyn Youngian perspective, the neoclassical Solow model of growth and the associated empirical estimates of the sources of growth based on it. It attempts to clarify Young’s particular concept of generalised or macroeconomic “increasing returns” to show the limitations of a model of growth based on an assumption that the aggregate production function is characterised by constant returns to scale but “augmented” by exogenous technical progress. Young’s concept of endogenous, self-sustaining growth is also shown to differ in important respects (including in its policy implications) from modern endogenous growth theory.

A Producer Theory with Business Risks

In this paper, we consider a producer who faces uninsurable business risks due to incomplete spanning of asset markets over stochastic goods market outcomes, and examine how the presence of the uninsurable business risks affects the producer's optimal pricing and production behaviours. Three key (inter-related) results we find are: (1) optimal prices in goods markets comprise ‘markup’ to the extent of market power and ‘premium’ by shadow price of the risks; (2) price inertia as we observe in data can be explained by a joint work of risk neutralization motive and marginal cost equalization condition; (3) the relative responsiveness of risk neutralization motive and marginal cost equalization at optimum is central to the cyclical variation of markups, providing a consistent explanation for procyclical and countercyclical movements. By these results, the proposed theory of producer leaves important implications both micro and macro, and both empirical and theoretical.

Relative price riddles in international business cycle theory: Are transport costs the explanation?

We study relative price behavior in an international business cyclemodel with specialization in production, in which a goods marketfriction is introduced through transport costs. The transporttechnology allows for flexible transport costs. We analyze whetherthis extension can account for the striking differences betweentheory and data as far as the moments of terms of trade and realexchange rates are concerned. We find that transport costs increaseboth the volatility of the terms of trade and the volatility of thereal exchange rate. However, unless the transport technology isspecified by a Leontief technology, transport costs do not resolvethe quantitative discrepancies between theory and data. Asurprising result is that transport costs may actually lower thepersistence of the real exchange rate, a finding that is in contrastto much of the emphasis of the empirical literature.

Contracting externalities and multiple equilibria in sectors: Theory and evidence

We consider an economy where the production technology has constantreturns to scale but where in the descentralized equilibrium thereare aggregate increasing returns to scale. The result follows froma positive contracting externality among firms. If a firms issurrounded by more firms, employees have more opportunitiesoutside their own firm. This improves employees' incentives toinvest in the presence of ex post renegotiation at the firm level,at not cost. Our leading result is that if a region is sparselypopulated or if the degree of development in the region is lowenough, there are multiple equilibria in the level of sectorialemployment. From the theoretical model we derive a non-linearfirst-order censored difference equation for sectoral employment.Our results are strongly consistent with the multiple equilibriahypothesis and the existence of a sectoral critical scale (belowwich the sector follows a delocation process). The scale of theregions' population and the degree of development reduce thecritical scale of the sector.

A Walrasian theory of commodity money: Paradoxical results

The objective of this note is to analyze some implications of the model of commodity money described in Banerjee and Maskin (1996) which may seem paradoxical. In order to do this, we incorporate a general production cost structure into the model. We focus on two different results. First, the existence of technologies that make counterfeiting a commodity more difficult may exclude it from being used as medium of exchange. Second, allocative distortions due to problems of asymmetric information may become larger in the presence of such technologies.

How competition controls team production: The case of fishing firms

Under team production, those who monitor individual productivity areusually the only ones compensated with a residual that varies withthe performance of the team. This pattern is efficient, as is shownby the prevalence of conventional firms, except for small teams andwhen specialized monitoring is ineffective. Profit sharing in repeatedteam production induces all team members to take disciplinary actionagainst underperformers through switching and separation decisions,however. Such action provides effective self-enforcemnt when themarkets for team members are competitive, even for large teams usingspecialized monitoring. The traditional share system of fishing firmsshows that for this competition to provide powerful enough incentivesthe costs of switching teams and measuring team productivity must bebellow. Risk allocation may constrain the organizational designdefined by the use of a share system. It does not account for itsexistence, however.

Book production and the onset of modern economic growth

Endogenous growth theory suggests that human capital formation plays a significant role for the wealth and poverty of nations. In contrast to previous studies which denied the role of human capital as a crucial determinant of for really long-term growth, we confirm its importance. Indicators of human capital like literacy rates are lacking for the period of 1450-1913; hence, we use per capita book production as a proxy for advanced literacy skills. This study explains how, and to what extent, growth disparities are a function of human capital formation.

Entropy Production In Thermodynamic Climate Models

We present a non-equilibrium theory in a system with heat and radiative fluxes. The obtained expression for the entropy production is applied to a simple one-dimensional climate model based on the first law of thermodynamics. In the model, the dissipative fluxes are assumed to be independent variables, following the criteria of the Extended Irreversible Thermodynamics (BIT) that enlarges, in reference to the classical expression, the applicability of a macroscopic thermodynamic theory for systems far from equilibrium. We analyze the second differential of the classical and the generalized entropy as a criteria of stability of the steady states. Finally, the extreme state is obtained using variational techniques and observing that the system is close to the maximum dissipation rate