R&D in Markets with Network Externalities

We study how network externalities affect research and development (R&D) investments by a non-cooperative duopoly that offers compatible products. We find that multiple R&D equilibria may arise when network externalities are non linear in the number of consumers. The lowest R&D equilibrium corresponds to the case where network externalities are absent. However, even in the presence of network externalities, firms may be trapped in a low-R&D equilibrium where output, and therefore consumers' valuation of the network size, is low. We derive the conditions under which the highest-R&D equilibrium Pareto dominates.Network Externalities

Technology Licensing to a Rival

Licensing a new technology implies introducing competition into the market. This has a negative effect on the profit of the incumbent if the demand remains unchanged. However, because of the novel content of an innovation, consumers may have different perceptions of the value of a good depending on the market structure. Thus, the introduction of a competitor into the market may enhance demand, and consequently have a positive effect on the profit of the incumbent. In a simple setting, we show that the incumbent may decide to license her technology even in the absence of a royalty when the positive effect outweighs the negative one.innovation.

Externalités et coopération en recherche et développement : une reconceptualisation

Cet article distingue deux externalités associées à la recherche et développement (R et D) : techniques et concurrentielles. Nous montrons que les principaux résultats concernant l’incidence des externalités sur les dépenses en R et D se résument à une comparaison de l’amplitude de ces deux externalités sous l’hypothèse d’une fonction de demande linéaire. De plus, nous concluons que dans les accords de coopération en R et D, les externalités concurrentielles atténuent l’incitation à resquiller issue des externalités techniques.This article distinguishes two R&D externalities: technical and competitive. We show that the main results in the literature are obtained by comparing the magnitude of those two externalities if the inverse demand function is linear. Moreover, we conclude that in cooperative R&D agreements, competitive externalities reduce free riding which arises from technical externalities

HD DVD vs. Blu-Ray: The End Of A Battle

The launch decisions made by the HD DVD and Blu-ray clans are compared in order to explain the victory of the Blu-ray technology on the market of new generation digital versatile disc (DVD) players

Externalités et coopération en recherche et développement : une reconceptualisation

This article distinguishes two R&D externalities: technical and competitive. We show that the main results in the literature are obtained by comparing the magnitude of those two externalities if the inverse demand function is linear. Moreover, we conclude that in cooperative R&D agreements, competitive externalities reduce free riding which arises from technical externalities. Cet article distingue deux externalités associées à la recherche et développement (R et D) : techniques et concurrentielles. Nous montrons que les principaux résultats concernant l’incidence des externalités sur les dépenses en R et D se résument à une comparaison de l’amplitude de ces deux externalités sous l’hypothèse d’une fonction de demande linéaire. De plus, nous concluons que dans les accords de coopération en R et D, les externalités concurrentielles atténuent l’incitation à resquiller issue des externalités techniques.

Growth And Corporate Identity: The Case Of Ocean Spray

To explore the assumption that a firm’s strategic initiatives must fit with its corporate identity in order to ensure their success, we conduct an in-depth case study of Ocean Spray’s ventures in new products

What Are Consumers Looking For In Dark Chocolate?

In this paper, we conduct a conjoint analysis to measure the relative importance of attributes of dark chocolate brand, country of origin, certification, cacao content in the formation of consumers preferences. Results show that the cacao content is the most important attribute

Trachyte phase relations and implication for magma storage conditions in the Chaîne des Puys (French Massif Central).

International audiencePetrological data have been acquired on the natural trachytes from the Chaîne des Puys, French Massif Central, and on experimental products from phase equilibria in order to (i) constrain the storage conditions of the trachytic magmas that lead to explosive eruptions (dome destructions as block-and-ash flows or pumice-and-ash flows) and (ii) provide phase relationships and chemical compositions for differentiated alkaline liquids in intraplate continental context. Phase assemblages, proportions, and compositions have been determined on six trachytes with SiO2 contents varying from 62 to 69 wt % and alkali contents of 10.5-12.0 wt %. The samples contain up to 30 % of phenocrysts, mainly consisting of feldspar (15-17 %; plagioclase and/or alkali-feldspar), biotite (2-6 %; except in the SiO2-poorest sample), Fe-Ti oxides (1-3 %) ± amphibole (< 5 %), ± clinopyroxene (~1 %). All samples have apatite and zircon as minor phases and titanite has been found in one sample. Pristine glasses (melt inclusions or residual glasses) in pumice from explosive events are trachytic to rhyolitic (65-73 wt % SiO2 and 10.5-13.0 wt % alkali). H2O dissolved in melt inclusions and the biotite+alkali feldspar+magnetite hygrobarometer both suggest pre-eruptive H2O contents up to 8 wt %. These are so far the highest H2O contents ever reported for alkaline liquids in an intraplate continental context. Melt inclusions also contain ~3400 ppm chlorine, ~700 ppm fluorine, and ~300 ppm sulphur. Crystallisation experiments of the six trachytes have been performed between 200 and 400 MPa, 700 and 900°C, H2O saturation, and oxygen fugacity of NNO +1. The comparison between the natural and experimental phase assemblage, proportion, and composition suggests magma storage conditions at a pressure of 300-350 MPa (~10-12 km deep), melt H2O content ~8 wt % (close to saturation), an oxygen fugacity close to NNO~0.5, and temperatures increasing from 700 to 825°C with decreasing bulk SiO2 of the trachyte. The high H2O contents of the trachytes show that wet conditions may prevail during the differentiation of continental alkaline series. Regardless of the size of the magma reservoir assumed to have fed the trachyte eruptions, calculation of the thermal relaxation timescales indicates that the tapped reservoir(s) are likely to be still partially molten nowadays. The four northernmost edifices may correspond to a single large reservoir with a lateral extension of up to 10 km, which could be possibly reactivated in weeks to months if intercepted by new rising basalt batches

Oxygen permeation in bismuth-based materials part I: Sintering and oxygen permeation fluxes

Oxygen permeation measurements were performed on two layered bismuth based oxide ceramics: a rhombohedral phase belonging to the Bi2O3-CaO system, (Bi2O3)0.73- (CaO)0.27 (BICAO) and a BICOVOX phase. Oxygen permeability for these systems was compared to permeability of the cubic fluorite type structure with composition (Bi2O3)0.75(Er2O3)0.25 (BE25). Low oxygen permeability was observed for the pure ceramic. As for BE25, permeability was considerably increased if 40 vol% of silver was added to BICAO. In contrast, permeability was not improved by addition of gold to BICOVOX. For this latter phase, the oxygen molecular exchange at the surface is clearly the limiting step in the oxygen transfer

Human Metapneumovirus Infection among Children Hospitalized with Acute Respiratory Illness

Recent studies have associated human Metapneumovirus (HMPV) infection in children with respiratory disease of similar severity as respiratory syncytial virus (RSV) infection. We studied 668 banked swab specimens (one per admission) collected from a population-based, prospective study of acute respiratory illness among inpatient children from two U.S. cities. Specimens were tested for HMPV, RSV, influenza, and parainfluenza viruses by reverse transcription–polymerase chain reaction assays. Twenty-six (3.9%) were positive for HMPV; 125 (18.7%) for RSV; 45 (6.7%) for parainfluenza 1, 2, or 3; and 23 (3.4%) for influenza. HMPV-positive children were significantly older than RSV-positive children. HMPV-positive children required medical intensive care and received supplemental oxygen in similar frequencies to RSV-positive children. Among children hospitalized with respiratory illness, the incidence of HMPV infection was less than RSV, but clinical disease severity mirrored that of RSV infection. Further investigations to better characterize HMPV infection and its clinical effect are needed