Valuing a portfolio of dependent RandD projects: a Copula approach

The aim of this work consists of pricing a real biotechnology firm that is based on a portfolio of several drug development projects at different phases. Duffie and Singleton (1999) formulate a system of n correlated jump mean-reverting intensity equations to capture a portfolio of n entities’ default times. The drawback of their approach is that there are a lot of parameters and we have no enough information so as to estimate all. This is the reason why the copula approach has been very well accepted in recent years as an alternative tool for these situations since we can model the extreme situations (or default in this case) under a dependence framework by selecting those copula functions with a very few number of parameters.Copula, valuation, company, real options

Reply to "Comment on "Some implications of the quantum nature of laser fields for quantum computations''''

In this revised reply to quant-ph/0211165, I address the question of the validity of my results in greater detail, by comparing my predictions to those of the Silberfarb-Deutsch model, and I deal at greater length with the beam area paradox. As before, I conclude that my previous results are an (order-of-magnitude) accurate estimate of the error probability introduced in quantum logical operations by the quantum nature of the laser field. While this error will typically (for a paraxial beam) be smaller than the total error due to spontaneous emission, a unified treatment of both effects reveals that they lead to formally similar constraints on the minimum number of photons per pulse required to perform an operation with a given accuracy; these constraints agree with those I have derived elsewhere.Comment: A reply to quant-ph/0211165. Added more calculations and discussion, removed some flippanc

Optimal Collusion with Internal Contracting

In this paper, we develop a model of collusion in which two firms play an infinitely repeated Bertrand game when each firm has a privately-informed agent. The colluding firms, fixing prices, allocate market shares based on the agent’s information as to cost types. We emphasize that the presence of privately-informed agents may provide firms with a strategic opportunity to exploit an interaction between internal contracting and market-sharing arrangement: the contracts with agents may be used to induce firms’ truthful communication in their collusion, and collusive market-share allocation may act to reduce the agents’ information rents.Optimal collusion, internal contract, privately-informed agents, price-fixing

Analytical results for a conditional phase shift between single-photon pulses in a nonlocal nonlinear medium

It has been suggested that second-order nonlinearities could be used for quantum logic at the single-photon level. Specifically, successive two-photon processes in principle could accomplish the phase shift (conditioned on the presence of two photons in the low frequency modes) $|011 \rangle \longrightarrow i|100 \rangle \longrightarrow -|011 \rangle$. We have analyzed a recent scheme proposed by Xia et al. to induce such a conditional phase shift between two single-photon pulses propagating at different speeds through a nonlinear medium with a nonlocal response. We present here an analytical solution for the most general case, i.e. for an arbitrary response function, initial state, and pulse velocity, which supports their numerical observation that a $\pi$ phase shift with unit fidelity is possible, in principle, in an appropriate limit. We also discuss why this is possible in this system, despite the theoretical objections to the possibility of conditional phase shifts on single photons that were raised some time ago by Shapiro and by one of us

Conservation and use of genetic resources of underutilized crops in the Americas - A continental analysis

Latin America is home to dramatically diverse agroecological regions which harbor a high concentration of underutilized plant species, whose genetic resources hold the potential to address challenges such as sustainable agricultural development, food security and sovereignty, and climate change. This paper examines the status of an expert-informed list of underutilized crops in Latin America and analyses how the most common features of underuse apply to these. The analysis pays special attention to if and how existing international policy and legal frameworks on biodiversity and plant genetic resources effectively support or not the conservation and sustainable use of underutilized crops. Results show that not all minor crops are affected by the same degree of neglect, and that the aspects under which any crop is underutilized vary greatly, calling for specific analyses and interventions. We also show that current international policy and legal instruments have so far provided limited stimulus and funding for the conservation and sustainable use of the genetic resources of these crops. Finally, the paper proposes an analytical framework for identifying and evaluating a crop’s underutilization, in order to define the most appropriate type and levels of intervention (international, national, local) for improving its statu

Impossibility of large phase shifts via the "giant Kerr effect" with single-photon wavepackets

An approximate analytical solution is presented, along with numerical calculations, for a system of two single-photon wavepackets interacting via an ideal, localized Kerr medium. It is shown that, because of spontaneous emission into the initially unoccupied temporal modes, the cross-phase modulation in the Schrodinger picture is very small as long as the spectral width of the single-photon pulses is well within the medium's bandwidth. In this limit, the Hamiltonian used can be derived from the "giant Kerr effect" for a four-level atom, under conditions of electromagnetically-induced transparency; it is shown explicitly that the linear absorption in this system increases as the pulse's spectral width approaches the medium's transparency bandwidth, and hence, as long as the absorption probability remains small, the maximum cross-phase modulation is limited to essentially useless values. These results are in agreement with the general, causality- and unitarity-based arguments of Shapiro and co-workers.Comment: 8 pages, 2 figures, to be submitted to Physical Review

Single-photon, cavity-mediated gates: detuning, losses, and non-adiabatic effects

We study several extensions of the single-photon, cavity-mediated quantum logical gates recently proposed by Koshino, Ishizaka and Nakamura: to a double-sided cavity configuration, to the case where the two atomic ground states are nondegenerate, and to include nonadiabatic corrections. Our analysis can be used to estimate the effects of various imperfections, and to prepare the way for a proof-of-principle demonstration with present technology. An interesting result is that the leading correction to the adiabatic approximation can be made to vanish for a suitable choice of detunings, provided the cavity is "good enough" (high enough ratio of coupling to loss). This could significantly relax the need for long single-photon pulses.Comment: 11 pages, 9 figures; to appear in Physical Review