Competition in two-sided markets with common network externalities

We study competition in two sided markets with common network externality rather than with the standard inter-group e¤ects. This type of externality occurs when both groups bene t, possibly with di¤erent intensities, from an increase in the size of one group and from a decrease in the size of the other. We explain why common externality is relevant for the health and education sectors. We focus on the symmetric equilibrium and show that when the externality itself satis es an homogeneity condition then platforms pro ts and price structure have some speci c properties. Our results reveal how the rents coming from network externalities are shifted by platforms from one side to other, according to the homogeneity degree. In the speci c but realistic case where the common network externality is homogeneous of degree zero, platform s pro t do not depend on the intensity of the (common) network externality. This is in sharp contrast to conventional results stating that the presence of network externalities in a two-sided market structure increases the intensity of competition when the externality is positive (and decreases it when the externality is negative). Prices are a¤ected but in such a way that platforms only transfer rents from consumers to providers.

Doctors´ remuneration schemes and hospital competition in two-sided markets with common network externalities

This paper uses a two-sided market model of hospital competition to study the implications of di§erent remunerations schemes on the physiciansí side. The two-sided market approach is characterized by the concept of common network externality (CNE) introduced by Bardey et al. (2010). This type of externality occurs when occurs when both sides value, possibly with di§erent intensities, the same network externality. We explicitly introduce e§ort exerted by doctors. By increasing the number of medical acts (which involves a costly e§ort) the doctor can increase the quality of service o§ered to patients (over and above the level implied by the CNE). We Örst consider pure salary, capitation or fee-for-service schemes. Then, we study schemes that mix fee-for-service with either salary or capitation payments. We show that salary schemes (either pure or in combination with fee-for-service) are more patient friendly than (pure or mixed) capitations schemes. This comparison is exactly reversed on the providersíside. Quite surprisingly, patients always loose when a fee-for-service scheme is introduced (pure of mixed). This is true even though the fee-for-service is the only way to induce the providers to exert e§ort and it holds whatever the patientsívaluation of this e§ort. In other words, the increase in quality brought about by the fee-for-service is more than compensated by the increase in fees faced by patients.

From network pictures to network insight in solution business – the role of internal communication

Operating in business-to-business markets requires an in-depth understanding on business networks. Actions and reactions made to compete in markets are fundamentally based on managers‘ subjective perceptions of the network. However, an amalgamation of these individual perceptions, termed a network picture, to a common company level shared understanding on that network, known as network insight, is found to be a substantial challenge for companies. A company‘s capability to enhance common network insight is even argued to lead competitive advantage. Especially companies with value creating logics that require wide comprehension of and collaborating in networks, such as solution business, are necessitated to develop advanced network insight. According to the extant literature, dispersed pieces of atomized network pictures can be unified to a common network insight through a process of amalgamation that comprises barriers/drivers of multilateral exchange, manifold rationality, and recursive time. However, the extant body of literature appears to lack an understanding on the role of internal communication in the development of network insight. Nonetheless, the extant understanding on the amalgamation process indicates that internal communication plays a substantial role in the development of company level network insight. The purpose of the present thesis is to enhance understanding on internal communication in the amalgamation of network pictures to develop network insight in the solution business setting, which was chosen to represent business-to-business value creating logic that emphasizes the capability to understand and utilize networks. Thus, in solution business the role of succeeding in the amalgamation process is expected to emphasize. The study combines qualitative and quantitative research by means of various analytical methods including multiple case analysis, simulation, and social network analysis. Approaching the nascent research topic with differing perspectives and means provides a broader insight on the phenomenon. The study provides empirical evidence from Finnish business-to-business companies which operate globally. The empirical data comprise interviews (n=28) with managers of three case companies. In addition the data includes a questionnaire (n=23) collected mainly for the purpose of social network analysis. In addition, the thesis includes a simulation study more specifically achieved by means of agent based modeling. The findings of the thesis shed light on the role of internal communication in the amalgamation process, contributing to the emergent discussion of network insights and thus to the industrial marketing research. In addition, the thesis increases understanding on internal communication in the change process to solution business, a supplier‘s internal communication in its matrix organization structure during a project sales process, key barriers and drivers that influence internal communication in project sales networks, perceived power within industrial project sales, and the revisioning of network pictures. According to the findings, internal communication is found to play a substantial role in the amalgamation process. First, it is suggested that internal communication is a base of multilateral exchange. Second, it is suggested that internal communication intensifies and maintains manifold rationality. Third, internal communication is needed to explicate the usually differing time perspectives of others and thus it is suggested that internal communication has role as the explicator of recursive time. Furthermore, the role of an efficient amalgamation process is found to be emphasized in solutions business as it requires a more advanced network insight for cross-functional collaboration. Finally, the thesis offers several managerial implications for industrial suppliers to enhance the amalgamation process when operating in solution business.

The abuse of intellectual property rights and regulations in China: a law and economic analysis

From the institutional point of view, the legal system of IPR (intellectual property right, hereafter, IPR) is one of incentive institutions of innovation and it plays very important role in the development of economy. According to the law, the owner of the IPR enjoy a kind of exclusive right to use his IP(intellectual property, hereafter, IP), in other words, he enjoys a kind of legal monopoly position in the market. How to well protect the IPR and at the same time to regulate the abuse of IPR is very interested topic in this knowledge-orientated market and it is the basic research question in this dissertation. In this paper, by way of comparing study and by way of law and economic analyses, and based on the Austrian Economics School’s theories, the writer claims that there is no any contradiction between the IPR and competition law. However, in this new economy (high-technology industries), there is really probability of the owner of IPR to abuse his dominant position. And with the characteristics of the new economy, such as, the high rates of innovation, “instant scalability”, network externality and lock-in effects, the IPR “will vest the dominant undertakings with the power not just to monopolize the market but to shift such power from one market to another, to create strong barriers to enter and, in so doing, granting the perpetuation of such dominance for quite a long time.”1 Therefore, in order to keep the order of market, to vitalize the competition and innovation, and to benefit the customer, in EU and US, it is common ways to apply the competition law to regulate the IPR abuse. In Austrian Economic School perspective, especially the Schumpeterian theories, the innovation/competition/monopoly and entrepreneurship are inter-correlated, therefore, we should apply the dynamic antitrust model based on the AES theories to analysis the relationship between the IPR and competition law. China is still a developing country with relative not so high ability of innovation. Therefore, at present, to protect the IPR and to make good use of the incentive mechanism of IPR legal system is the first important task for Chinese government to do. However, according to the investigation reports,2 based on their IPR advantage and capital advantage, some multinational companies really obtained the dominant or monopoly market position in some aspects of some industries, and there are some IPR abuses conducted by such multinational companies. And then, the Chinese government should be paying close attention to regulate any IPR abuse. However, how to effectively regulate the IPR abuse by way of competition law in Chinese situation, from the law and economic theories’ perspective, from the legislation perspective, and from the judicial practice perspective, there is a long way for China to go!

The selection of intended actions and the observation of others' actions: A time-resolved fMRI study

Whenever we plan, imagine, or observe an action, the motor systems that would be involved in preparing and executing that action are similarly engaged. The way in which such common motor activation is formed, however, is likely to differ depending on whether it arises from our own intentional selection of action or from the observation of another's action. In this study, we use time-resolved event-related functional MRI to tease apart neural processes specifically related to the processing of observed actions, the selection of our own intended actions, the preparation for movement, and motor response execution. Participants observed a finger gesture movement or a cue indicating they should select their own finger gesture to perform, followed by a 5-s delay period; participants then performed the observed or self-selected action. During the preparation and readiness for action, prior to initiation, we found activation in a common network of higher motor areas, including dorsal and ventral premotor areas and the pre-supplementary motor area (pre-SMA); the more caudal SMA showed greater activation during movement execution. Importantly, the route to this common motor activation differed depending on whether participants freely selected the actions to perform or whether they observed the actions performed by another person. Observation of action specifically involved activation of inferior and superior parietal regions, reflecting involvement of the dorsal visual pathway in visuomotor processing required for planning the action. In contrast, the selection of action specifically involved the dorsal lateral prefrontal and anterior cingulate cortex, reflecting the role of these prefrontal areas in attentional selection and guiding the selection of responses. (c) 2005 Elsevier Inc. All rights reserved.

A temporal hierarchy for conspecific vocalization discrimination in humans.

Introduction: Discrimination of species-specific vocalizations is fundamental for survival and social interactions. Its unique behavioral relevance has encouraged the identification of circumscribed brain regions exhibiting selective responses (Belin et al., 2004), while the role of network dynamics has received less attention. Those studies that have examined the brain dynamics of vocalization discrimination leave unresolved the timing and the inter-relationship between general categorization, attention, and speech-related processes (Levy et al., 2001, 2003; Charest et al., 2009). Given these discrepancies and the presence of several confounding factors, electrical neuroimaging analyses were applied to auditory evoked-potential (AEPs) to acoustically and psychophysically controlled non-verbal human and animal vocalizations. This revealed which region(s) exhibit voice-sensitive responses and in which sequence. Methods: Subjects (N=10) performed a living vs. man-made 'oddball' auditory discrimination task, such that on a given block of trials 'target' stimuli occurred 10% of the time. Stimuli were complex, meaningful sounds of 500ms duration. There were 120 different sound files in total, 60 of which represented sounds of living objects and 60 man-made objects. The stimuli that were the focus of the present investigation were restricted to those of living objects within blocks where no response was required. These stimuli were further sorted between human non-verbal vocalizations and animal vocalizations. They were also controlled in terms of their spectrograms and formant distributions. Continuous 64-channel EEG was acquired through Neuroscan Synamps referenced to the nose, band-pass filtered 0.05-200Hz, and digitized at 1000Hz. Peri-stimulus epochs of continuous EEG (-100ms to 900ms) were visually inspected for artifacts, 40Hz low-passed filtered and baseline corrected using the pre-stimulus period . Averages were computed from each subject separately. AEPs in response to animal and human vocalizations were analyzed with respect to differences of Global Field Power (GFP) and with respect to changes of the voltage configurations at the scalp (reviewed in Murray et al., 2008). The former provides a measure of the strength of the electric field irrespective of topographic differences; the latter identifies changes in spatial configurations of the underlying sources independently of the response strength. In addition, we utilized the local auto-regressive average distributed linear inverse solution (LAURA; Grave de Peralta Menendez et al., 2001) to visualize and statistically contrast the likely underlying sources of effects identified in the preceding analysis steps. Results: We found differential activity in response to human vocalizations over three periods in the post-stimulus interval, and this response was always stronger than that to animal vocalizations. The first differential response (169-219ms) was a consequence of a modulation in strength of a common brain network localized into the right superior temporal sulcus (STS; Brodmann's Area (BA) 22) and extending into the superior temporal gyrus (STG; BA 41). A second difference (291-357ms) also followed from strength modulations of a common network with statistical differences localized to the left inferior precentral and prefrontal gyrus (BA 6/45). These two first strength modulations correlated (Spearman's rho(8)=0.770; p=0.009) indicative of functional coupling between temporally segregated stages of vocalization discrimination. A third difference (389-667ms) followed from strength and topographic modulations and was localized to the left superior frontal gyrus (BA10) although this third difference did not reach our spatial criterion of 12 continuous voxels. Conclusions: We show that voice discrimination unfolds over multiple temporal stages, involving a wide network of brain regions. The initial stages of vocalization discrimination are based on modulations in response strength within a common brain network with no evidence for a voice-selective module. The latency of this effect parallels that of face discrimination (Bentin et al., 2007), supporting the possibility that voice and face processes can mutually inform one another. Putative underlying sources (localized in the right STS; BA 22) are consistent with prior hemodynamic imaging evidence in humans (Belin et al., 2004). Our effect over the 291-357ms post-stimulus period overlaps the 'voice-specific-response' reported by Levy et al. (Levy et al., 2001) and the estimated underlying sources (left BA6/45) were in agreement with previous findings in humans (Fecteau et al., 2005). These results challenge the idea that circumscribed and selective areas subserve con-specific vocalization processing.

L’effet du vieillissement normal sur les mécanismes centraux de la régulation de la douleur

Les personnes vieillissantes doivent composer au quotidien avec des douleurs chroniques. Le but de ce travail est de mieux comprendre les mécanismes sous-jacents qui contribueraient aux douleurs chroniques liées au vieillissement et par là, ouvrir un chemin vers de nouvelles perspectives thérapeutiques. Les contrôles inhibiteurs diffus nociceptifs (CIDN) ont un rôle qui n’est pas des moindres dans le contrôle de la douleur. Des études expérimentales examinant l’effet analgésique de la contre stimulation hétérotopique nociceptive (HNCS), un protocole permettant de tester l’efficacité de ces CIDN, suggèrent que le recrutement des CIDN au sein de cette population était plus faible (i.e. moins d’inhibition) comparé à une population plus jeune. En revanche, les études examinant la sensibilisation centrale induite par sommation temporelle (TS) de la douleur rapportent des résultats mitigés. De plus, une composante importante influençant l’expérience de douleur, les ressources cognitives, dont l’inhibition cognitive, se voient aussi décliner avec l’âge. Premièrement, le recrutement des CIDN a été comparé entre des participants sains, jeunes et des plus âgés avec la HNCS, et le recrutement des mécanismes de sensibilisation centrale avec la TS. La stimulation électrique du nerf sural a été choisie pour permettre de quantifier la douleur, tout en prenant une mesure indicative de la nociception spinale qu’est le réflexe nociceptif spinal (RIII). Nos sujets ont aussi participé à une tâche cognitive (le Stroop), testant l’inhibition cognitive. Deuxièmement, l’efficacité des CIDN ainsi que de l’inhibition cognitive a été testée chez les jeunes et les aînés en imagerie par résonance magnétique (IRM), afin de vérifier la relation entre ces deux mesures psychophysiques et l’épaisseur corticale des régions qui y sont impliquées ainsi que l’effet de l’âge sur celles-ci. Les résultats suggèrent un moindre recrutement des CIDN chez les plus âgés lors de l’expérimentation de la HNCS. Également, les sujets âgés présentaient des capacités d’inhibitions cognitives plus faibles que les jeunes. En plus, une corrélation entre l’inhibition cognitive et la modulation du réflexe RIII par la HNCS a été mise en évidence. Pour l’expérience de TS, les résultats étaient comparables pour les deux groupes, suggérant que les mécanismes impliqués dans la régulation de la douleur ne subiraient pas l’effet de l’âge de la même manière. Pour l’étude de l’épaisseur corticale, on y trouve une diminution globale de l’épaisseur corticale liée à l’âge, mais aussi une corrélation de l’analgésie par la HNCS avec l’inhibition cognitive et également, une relation des deux avec l’épaisseur corticale du cortex orbitofrontal (OFC) latéral gauche, suggérant la possibilité d’une existence d’un réseau neuronal au moins partiellement commun du contrôle inhibiteur descendant sensoriel et cognitif. Ce travail montre que l’effet de l’âge sur les mécanismes centraux de la régulation de la douleur est loin d’être uniforme. Également, il montre une corrélation entre la modulation endogène de la douleur et l’inhibition cognitive, ces deux processus seraient associés à une même région cérébrale. Ces résultats pourraient contribuer à identifier d’autres méthodes thérapeutiques, ouvrant ainsi une nouvelle avenue vers d’autres options dans la prise en charge des douleurs chroniques chez les personnes vieillissantes.

De lo micro a lo macro prudencial: Un análisis de la supervisión bancaria desde la econometría espacial

La crisis que se desató en el mercado hipotecario en Estados Unidos en 2008 y que logró propagarse a lo largo de todo sistema financiero, dejó en evidencia el nivel de interconexión que actualmente existe entre las entidades del sector y sus relaciones con el sector productivo, dejando en evidencia la necesidad de identificar y caracterizar el riesgo sistémico inherente al sistema, para que de esta forma las entidades reguladoras busquen una estabilidad tanto individual, como del sistema en general. El presente documento muestra, a través de un modelo que combina el poder informativo de las redes y su adecuación a un modelo espacial auto regresivo (tipo panel), la importancia de incorporar al enfoque micro-prudencial (propuesto en Basilea II), una variable que capture el efecto de estar conectado con otras entidades, realizando así un análisis macro-prudencial (propuesto en Basilea III).

Optimal game theoretic distributed control methodologies in small scale power systems

This dissertation presents the competitive control methodologies for small-scale power system (SSPS). A SSPS is a collection of sources and loads that shares a common network which can be isolated during terrestrial disturbances. Micro-grids, naval ship electric power systems (NSEPS), aircraft power systems and telecommunication system power systems are typical examples of SSPS. The analysis and development of control systems for small-scale power systems (SSPS) lacks a defined slack bus. In addition, a change of a load or source will influence the real time system parameters of the system. Therefore, the control system should provide the required flexibility, to ensure operation as a single aggregated system. In most of the cases of a SSPS the sources and loads must be equipped with power electronic interfaces which can be modeled as a dynamic controllable quantity. The mathematical formulation of the micro-grid is carried out with the help of game theory, optimal control and fundamental theory of electrical power systems. Then the micro-grid can be viewed as a dynamical multi-objective optimization problem with nonlinear objectives and variables. Basically detailed analysis was done with optimal solutions with regards to start up transient modeling, bus selection modeling and level of communication within the micro-grids. In each approach a detail mathematical model is formed to observe the system response. The differential game theoretic approach was also used for modeling and optimization of startup transients. The startup transient controller was implemented with open loop, PI and feedback control methodologies. Then the hardware implementation was carried out to validate the theoretical results. The proposed game theoretic controller shows higher performances over traditional the PI controller during startup. In addition, the optimal transient surface is necessary while implementing the feedback controller for startup transient. Further, the experimental results are in agreement with the theoretical simulation. The bus selection and team communication was modeled with discrete and continuous game theory models. Although players have multiple choices, this controller is capable of choosing the optimum bus. Next the team communication structures are able to optimize the players’ Nash equilibrium point. All mathematical models are based on the local information of the load or source. As a result, these models are the keys to developing accurate distributed controllers.

Integration versus Outsourcing in Stable Industry Equilibrium with Communication Networks

For the selection of a firm's structure between vertical integration and arm's-length outsourcing, the importance of the thickness of the market had been emphasized in the previous literature. Here we take account of communication networks such as telephone, telex, fax, and the Internet. By doing so, we could illustrate the relationship between communication networks and the make-or-buy decision. With communication network technology differing in each type of firm, both vertically integrated firms and arm's-length outsourcing firms coexist, which was never indicated in the previous literature. However, when common network technology is introduced, such coexistence generically does not occur.

El núcleo de red en redes de nueva generación

El presente proyecto fin de carrera tiene como objetivo realizar un estudio del núcleo de red en las de redes de nueva generación (NGN) y de cómo la evolución de las redes actuales hacia estos conceptos producirá un cambio en la forma de pensar y desarrollar las redes de comunicaciones del futuro. El estudio esta desglosado en tres grandes partes y se inicia con el análisis de la evolución que ha sufrido el núcleo de red en las redes de comunicaciones móviles digitales desde la implantación de las primeras redes digitales hasta la actualidad abarcando tanto la evolución de las redes troncales como de las redes de acceso así como los cambios que han tenido lugar tanto dentro de las propias estructuras de red de los operadores como la forma de interconectarse entre sus redes. Una segunda parte que constituye el cuerpo teórico del trabajo donde se estudia a nivel funcional y de arquitectura de red el desarrollo de los nuevos modelos de red proporcionados por los organismos de estandarización que dan lugar a la aparición de las redes de nueva generación (NGN) y que constituirán el siguiente paso en la evolución de las redes de comunicaciones hacia una infraestructura de red común para todas las redes de acceso actuales. Y una tercera parte que tiene como objetivo el estudio del grado de transformación que tienen que sufrir el núcleo de red en actuales redes troncales de comunicaciones móviles y terrestres, así como una valoración del estado actual de dicha integración, de las dificultades que están encontrando fabricantes y proveedores de servicio para la implementación de dichas redes en el contexto tecnológico y económico actual y su respectivo análisis de como afectará este cambio a los modelos de negocio de los proveedores de servicios de telecomunicaciones. Finalmente se estudia como se esta llevando a cabo este proceso por medio de un caso práctico de implantación e interconexión de la solución propuesta por un fabricante de equipamiento basándose en los modelos anteriormente expuestos en una red comercial de un operador en España y todas las implicaciones asociadas a esta caso concreto. The object of this work is to provide a deep view about the core network inside next generation network (NGN) and how the evolution of the current comunications networks towards the concepts introduced by these new networks brings a change in the way of think and develop communications networks of the future. This work is composed of three blocks and one real case and it starts with the analysis of the evolution of the core network in digital mobile comunications networks since the beginning of the digital mobile comunications networks deployments until nowadays both in core network side and access network side and how the providers have made changes inside their comunications infrastructure and how they interconnect them with other networks. A second part which is the central theoretical part of this work where it is studied the next generation network models stablished by telecomunications associations and how they will be the next step in the evolution of comunications networks towards a common network infrastructure for all existing access networks. A third part where it is studied the level of transformation that core network in mobile and terrestrial comunications networks have to experienced since current situation up to next generation scenarios and what it is the impact of these changes, the issues that are arising for developers, manufactures and service providers in this process, the way that these changes will improve and shift telecomunications business models and how the current economic and technological context is influencing in the whole process. Finally it is studied a actual case about a proposed solution by a manufacturer that based on the models exposed in second part take place a integration and interconection process in a the comercial network of one telecomunication service providers in Spain. This final part regards to all implications associated with this specific case.

El surgimiento de HTML5; un nuevo paradigma en los estándares Web

Gracias al crecimiento, expansión y popularización de la World Wide Web, su desarrollo tecnológico tiene una creciente importancia en la sociedad. La simbiosis que protagonizan estos dos entornos ha propiciado una mayor influencia social en las innovaciones de la plataforma y un enfoque mucho más práctico. Nuestro objetivo en este artículo es describir, caracterizar y analizar el surgimiento y difusión del nuevo estándar de hipertexto que rige la Web; HTML5. Al mismo tiempo exploramos este proceso a la luz de varias teorías que aúnan tecnología y sociedad. Dedicamos especial atención a los usuarios de la World Wide Web y al uso genérico que realizan de los Medios Sociales o "Social Media". Sugerimos que el desarrollo de los estándares web está influenciado por el uso cotidiano de este nuevo tipo de tecnologías y aplicaciones. 

Ric1p and the Ypt6p GTPase Function in a Common Pathway Required for Localization of Trans-Golgi Network Membrane Proteins

In Saccharomyces cerevisiae, clathrin is necessary for localization of trans-Golgi network (TGN) membrane proteins, a process that involves cycling of TGN proteins between the TGN and endosomes. To characterize further TGN protein localization, we applied a screen for mutations that cause severe growth defects in combination with a temperature-sensitive clathrin heavy chain. This screen yielded a mutant allele of RIC1. Cells carrying a deletion of RIC1 (ric1Δ) mislocalize TGN membrane proteins Kex2p and Vps10p to the vacuole. Delivery to the vacuole occurs in ric1Δ cells also harboring end3Δ to block endocytosis, indicative of a defect in retrieval to the TGN rather than sorting to endosomes. SYS1, originally discovered as a multicopy suppressor of defects caused by the absence of the Rab GTPase YPT6, was identified as a multicopy suppressor of ric1Δ. Further comparison of ric1Δ and ypt6Δ cells demonstrated identical phenotypes. Multicopy plasmids expressing v-SNAREs Gos1p or Ykt6p, but not other v- and t-SNAREs, partially suppressed phenotypes of ric1Δ and ypt6Δ cells. SLY1–20, a dominant activator of the cis-Golgi network t-SNARE Sed5p, also functioned as a multicopy suppressor. Because Gos1p and Ykt6p interact with Sed5p, these results raise the possibility that TGN membrane protein localization requires Ric1p- and Ypt6p-dependent retrieval to the cis-Golgi network.