The effects of non-assertion of patents provisions: R&D incentives in vertical relationships

Using a simple downstream duopoly model with vertical relations and downstream R&D, we investigate the effect of non-assertion of patents (NAP) provisions. A monopoly upstream firm decides whether to employ NAP provisions. If it does so, it freely incorporates the R&D outcomes into its inputs. Incorporation improves the efficiency of the downstream firms' production. We have interpreted the introduction of NAP provisions as a source of technology spillover. Using the technologies of two downstream firms is optimal for the upstream firm if and only if the degree of technology spillover is small. In addition, if the ex ante cost difference between the downstream firms is significant, such technology spillovers erode both the profit of the efficient downstream firm and social welfare. We interpret our result in the context of an actual antitrust case related to this model.

Dynamic Entry Deterrence in a Location-Price Model

規制改革・構造改革に関する議論が盛んに行われているが,その中で競争政策の重要性も改めて高まっている感がある.本稿では,その中の私的独占に関連する問題を取り上げる.私的独占の経済学的な問題点は,端的に言えば,効率性(社会余剰)の最大化に反するという点である.既存企業が参入阻止行動を取った結果,あるいは,様々な規制の存在等により参入が起こらず,競争による利益が実現しない状況がその典型例である.この問題の最も基本的な解決策は,参入促進のために参入費用を低下させることである.本稿は,この参入費用低下策に全く効果がない場合があることを理論モデルを用いて指摘する.より具体的には,一定の条件を組み込んだ動学的な立地-価格モデルを構築した上で,均衡において,参入費用と退出費用が共に0であっても既存企業が全ての市場を独占ている状態からは参入が起こらず,既存企業は潜在的な参入の機会に直面しても行動を変える必要がないことを示す.Incumbent firms often use various means to prevent entry. Also, various regulations sometimes make entry difficult even though they do not intend to do so. As a result, entry cost becomes so high that no entry occurs. In order to induce entry, it is usually effective to reduce the entry cost. However, the present paper shows that reducing entry cost is of no use in a certain environment. More concretely, we construct a dynamic location-price model, where a potential entrant can enter a horizontally differentiated market after an incumbent monopolist. When firms face some kind of financial constraints, no entry occurs in the (unique) subgame perfect equilibrium

Relationship between Price Leadership and Sustainable Collusion(<Special issue>Economic Law and Industrial Organization)

現実に観察される多様な企業行動の一つに,ある企業が先に価格変更を発表し,同業他社が一斉に同内容の価格変更を予告するという行為がある.実際に価格変更が行われる時は全ての企業がほぼ一斉に値上げを行っている以上,特定の順番で「予告」を行うこと自体には一見深い意昧はないように見える.本稿はこうした一連の行為をカルテルの文脈で理論的に分析した結果,とりわけ,低い割引率(discount factor)の下で,全ての企業が厳密に利得を増やせるようなカルテルが実現可能になるため,その戦略的価値は非常に高くなることを明らかにした.This paper examines price leadership in the context of collusion. Using simple duopolistic price competition as a stage game, we analyze repeated price competition and show that payoffirrelevant timing structure allows all firms earn strictly higher profits especially when the discount factor is low. This result implies that the loss by the adoption of price leadership may be rather large when the price leadership appears from the collusive behaviors of firms

Integral role of receptor for advanced glycation end products (RAGE) in nondiabetic atherosclerosis

An advanced glycation end products (AGE)/a receptor for AGE (RAGE) axis plays a central role in the pathogenesis of diabetic vascular remodeling. This study was conducted to clarify the role of RAGE in nondiabetic atherosclerosis. We used the aortic and coronary atherosclerotic lesions of Watanabe heritable hyperlipidemic (WHHL) rabbits prone to myocardial infarction (WHHLMI) at 1 to 14 months. Immunohistochemistry demonstrated the significant expression of RAGE as early as at 1 month with the stronger expression at 3 and 7 months, which was remarkably diminished at 14 months. RAGE expression was concordant with AGE accumulation. The major original sources of RAGE expression were macrophages and smooth muscle cells in addition to endothelial cells, and RAGE expression was distributed in the areas of phospholipid products, a component of oxidized LDL and nitrotyrosine. The concentrations of serum AGE did not alter significantly with aging. These findings suggested the expression of RAGE was induced by hyperlipidemia and oxidative stress independent of diabetes in WHHLMI rabbits. Additionally, our in vitro study showed that silencing of RAGE tended to attenuate oxidized-LDL-triggered PAI-1 expression in human cultured macrophages, as well as oxidized-LDL-induced tissue factor expression in peritoneal macrophages, suggesting a possible role of RAGE in prothrombogenic molecular regulation. In conclusion, the present study provides in vivo evidence that RAGE plays an integral role in the initiation and progression of nondiabetic atherosclerosis, suggesting that RAGE may be a novel target for treating not only diabetic but also nondiabetic vascular complications

Transgenic Monkey Model of the Polyglutamine Diseases Recapitulating Progressive Neurological Symptoms

Age-associated neurodegenerative diseases, such as Alzheimer’s disease, Parkinson’s disease, and the polyglutamine (polyQ) diseases, are becoming prevalent as a consequence of elongation of the human lifespan. Although various rodent models have been developed to study and overcome these diseases, they have limitations in their translational research utility owing to differences from humans in brain structure and function and in drug metabolism. Here, we generated a transgenic marmoset model of the polyQ diseases, showing progressive neurological symptoms including motor impairment. Seven transgenic marmosets were produced by lentiviral introduction of the human ataxin 3 gene with 120 CAG repeats encoding an expanded polyQ stretch. Although all offspring showed no neurological symptoms at birth, three marmosets with higher transgene expression developed neurological symptoms of varying degrees at 3–4 months after birth, followed by gradual decreases in body weight gain, spontaneous activity, and grip strength, indicating time-dependent disease progression. Pathological examinations revealed neurodegeneration and intranuclear polyQ protein inclusions accompanied by gliosis, which recapitulate the neuropathological features of polyQ disease patients. Consistent with neuronal loss in the cerebellum, brain MRI analyses in one living symptomatic marmoset detected enlargement of the fourth ventricle, which suggests cerebellar atrophy. Notably, successful germline transgene transmission was confirmed in the second-generation offspring derived from the symptomatic transgenic marmoset gamete. Because the accumulation of abnormal proteins is a shared pathomechanism among various neurodegenerative diseases, we suggest that this new marmoset model will contribute toward elucidating the pathomechanisms of and developing clinically applicable therapies for neurodegenerative diseases.ArticleeNeuro.4(2):e0250(2017)journal articl

Study on variations in the normal microflora of the pharynx and the serum immunoglobulins in members of the 21st Japanese Antarctic Research Expedition 1979-1981

We examined the difference between the normal microflora in the pharynx and the levels of serum immunoglobulins of the Expedition members during their stay in Japan and at Syowa and Mizuho Stations, Antarctica. 1) There was no evidence that the bacterial species and the number of microflora in the pharynx had changed during the first three months at Syowa Station. 2) The number of pathogenic bacteria in the pharynx increased in the middle of winter (June and July) at Syowa Station. 3) In midsummer (November and December) of Antarctica, the pathogenic bacteria in the pharynx increased, probably due to the outdoor work. 4) The pathogenic bacteria were not detected in the pharynx of the members living at Mizuho Station, the nearest station to the South Pole, where the mercury falls to about 30 to 40 degrees below zero for eight months. 5) No remarkable differences were recognized in the levels of IgG and IgM in serum of the members during their stay in Japan and in Antarctica. On the other hand, IgA of them showed a slight increase, which may be explained by enhanced activity of local immunity

The Existence of Low-End Firms May Help High-End Firms

Two models of competition between high-end and low-end products benefiting the high-end firms are presented. One is a quantity competition model, and the other is a price competition model with product differentiation. The key factor is the existence of two heterogeneous consumer groups: those who demand only high-end (name-brand) products and those who care little whether products are high or low end. We show that, under certain conditions, the profits of firms in the high-end market are larger when there are firms producing low-end products than when there are not. The existence of price-sensitive consumers who care little about product quality intensifies competition among the high-end firms. The existence of low-end firms functions as a credible threat, which induces the high-end firms not to overproduce because price-sensitive consumers buy products from the low-end firms. The result provides a new theoretical mechanism concerning the profitability and pricing of national brand firms after the entry of private labels. It has an implication for pricing and marketing strategies: Established firms should not decrease their prices after the entry of nonestablished firms.marketing strategy, pricing research, product positioning, game theory