PATENT LICENSING BY MEANS OF AN AUCTION: INTERNAL VS. EXTERNAL PATENTEE

An independent research laboratory owns a patented process innovation that can be licensed by means of an auction to two Cournot duopolists producing differentiated goods. For large innovations and close enough substitute goods the patentee auctions o¤ only one license, preventing the full diffusion of the innovation. For this range of parameters, however, if the laboratory merged with one of the firms in the industry, full technology diffusion would be implemented as the merged entity would always license the innovation to the rival firm. This explains that, in this context, a vertical merger is both profitable and welfare improving.Patent licensing, two-part tariff contracts, vertical mergers

Bridging Psychology and Mathematics: Can the Brain Understand the Brain?

Mathematical measures of complexity shed light on why some concepts are inherently more difficult to learn than other

Traversing the Highwire from Pop to Optical

A visual neuroscientist comments on the art of Roy Lichtenstein, as viewed in a recent exhibition at the San Francisco Museum of Modern Ar

Infotropism as the underlying principle of perceptual organization

Whether perceptual organization favors the simplest or most likely interpretation of a distal stimulus has long been debated. An unbridgeable gulf has seemed to separate these, the Gestalt and Helmholtzian viewpoints. But in recent decades, the proposal that likelihood and simplicity are two sides of the same coin has been gaining ground, to the extent that their equivalence is now widely assumed. What then arises is a desire to know whether the two principles can be reduced to one. Applying Occam's Razor in this way is particularly desirable given that, as things stand, an account referencing one principle alone cannot be completely satisfactory. The present paper argues that unification of the two principles is possible, and that it can be achieved in terms of an incremental notion of `information seeking' (infotropism). Perceptual processing that is infotropic can be shown to target both simplicity and likelihood. The ability to see perceptual organization as governed by either objective can then be explained in terms of it being an infotropic process. Infotropism can be identified as the principle which underlies, and thus generalizes the principles of likelihood and simplicity

Towards an Intelligent Database System Founded on the SP Theory of Computing and Cognition

The SP theory of computing and cognition, described in previous publications, is an attractive model for intelligent databases because it provides a simple but versatile format for different kinds of knowledge, it has capabilities in artificial intelligence, and it can also function like established database models when that is required. This paper describes how the SP model can emulate other models used in database applications and compares the SP model with those other models. The artificial intelligence capabilities of the SP model are reviewed and its relationship with other artificial intelligence systems is described. Also considered are ways in which current prototypes may be translated into an 'industrial strength' working system

On a common circle: natural scenes and Gestalt rules

To understand how the human visual system analyzes images, it is essential to know the structure of the visual environment. In particular, natural images display consistent statistical properties that distinguish them from random luminance distributions. We have studied the geometric regularities of oriented elements (edges or line segments) present in an ensemble of visual scenes, asking how much information the presence of a segment in a particular location of the visual scene carries about the presence of a second segment at different relative positions and orientations. We observed strong long-range correlations in the distribution of oriented segments that extend over the whole visual field. We further show that a very simple geometric rule, cocircularity, predicts the arrangement of segments in natural scenes, and that different geometrical arrangements show relevant differences in their scaling properties. Our results show similarities to geometric features of previous physiological and psychophysical studies. We discuss the implications of these findings for theories of early vision.Comment: 3 figures, 2 large figures not include

Measuring Relations Between Concepts In Conceptual Spaces

The highly influential framework of conceptual spaces provides a geometric way of representing knowledge. Instances are represented by points in a high-dimensional space and concepts are represented by regions in this space. Our recent mathematical formalization of this framework is capable of representing correlations between different domains in a geometric way. In this paper, we extend our formalization by providing quantitative mathematical definitions for the notions of concept size, subsethood, implication, similarity, and betweenness. This considerably increases the representational power of our formalization by introducing measurable ways of describing relations between concepts.Comment: Accepted at SGAI 2017 (http://www.bcs-sgai.org/ai2017/). The final publication is available at Springer via https://doi.org/10.1007/978-3-319-71078-5_7. arXiv admin note: substantial text overlap with arXiv:1707.05165, arXiv:1706.0636

Invariant template matching in systems with spatiotemporal coding: a vote for instability

We consider the design of a pattern recognition that matches templates to images, both of which are spatially sampled and encoded as temporal sequences. The image is subject to a combination of various perturbations. These include ones that can be modeled as parameterized uncertainties such as image blur, luminance, translation, and rotation as well as unmodeled ones. Biological and neural systems require that these perturbations be processed through a minimal number of channels by simple adaptation mechanisms. We found that the most suitable mathematical framework to meet this requirement is that of weakly attracting sets. This framework provides us with a normative and unifying solution to the pattern recognition problem. We analyze the consequences of its explicit implementation in neural systems. Several properties inherent to the systems designed in accordance with our normative mathematical argument coincide with known empirical facts. This is illustrated in mental rotation, visual search and blur/intensity adaptation. We demonstrate how our results can be applied to a range of practical problems in template matching and pattern recognition.Comment: 52 pages, 12 figure

Neural Decision Boundaries for Maximal Information Transmission

We consider here how to separate multidimensional signals into two categories, such that the binary decision transmits the maximum possible information transmitted about those signals. Our motivation comes from the nervous system, where neurons process multidimensional signals into a binary sequence of responses (spikes). In a small noise limit, we derive a general equation for the decision boundary that locally relates its curvature to the probability distribution of inputs. We show that for Gaussian inputs the optimal boundaries are planar, but for non-Gaussian inputs the curvature is nonzero. As an example, we consider exponentially distributed inputs, which are known to approximate a variety of signals from natural environment.Comment: 5 pages, 3 figure