Pricing under innovation

We study pricing when firms introduce process and product innovations over time. We set up a model of endogenous productivity and markup under imperfect competition and dynamic pricing. We estimate it using output price indices reported by an unbalanced panel of 2,300 Spanish manufacturing firms during 1990-2006. Markups turn out to be procyclical and change with the introduction of innovations. Firms use innovation to increase margins, but product innovators are careful to raise prices on new or improved goods. Process innovations tend to leave prices unchanged, product innovations tend to raise prices and firms that introduce both tend to decrease them

Depolarization-activated potentiation of the T fiber synapse in the blue crab

The blue crab T fiber synapse, associated with the stretch receptor of the swimming leg, has a nonspiking presynaptic element that mediates tonic transmission. This synapse was isolated and a voltage clamp circuit was used to control the membrane potential at the release sites. The dependence of transmitter release on extracellular calcium, [Ca]o, was studied over a range of 2.5-40 mM. A power relationship of 2.7 was obtained between excitatory postsynaptic potential (EPSP) rate of rise and [Ca]o. Brief presynaptic depolarizing steps, 5-10 ms, presented at 0.5 Hz activated EPSP's of constant amplitude. Inserting a 300-ms pulse (conditioning pulse) between these test pulses potentiated the subsequent test EPSPs. This depolarization-activated potentiation (DAP) lasted for 10-20 s and decayed with a single exponential time course. The decay time course remained invariant with test pulse frequencies ranging from 0.11 to 1.1 Hz. The magnitude and decay time course of DAP were independent of the test pulse amplitudes. The magnitude of DAP was a function of conditioning pulse amplitudes. Large conditioning pulses activated large potentiations, whereas the decay time constants were not changed. The DAP is a Ca-dependent process. When the amplitude of conditioning pulses approached the Ca equilibrium potential, the magnitude of potentiation decreased. Repeated application of conditioning pulses, at 2-s intervals, did not produce additional potentiation beyond the level activated by the first conditioning pulse. Comparison of the conditioning EPSP waveforms activated repetitively indicated that potentiation lasted transiently, 100 ms, during a prolonged release. Possible mechanisms of the potentiation are discussed in light of these new findings.The blue crab T fiber synapse, associated with the stretch receptor of the swimming leg, has a nonspiking presynaptic element that mediates tonic transmission. This synapse was isolated and a voltage clamp circuit was used to control the membrane potential at the release sites. The dependence of transmitter release on extracellular calcium, [Ca]o, was studied over a range of 2.5-40 mM. A power relationship of 2.7 was obtained between excitatory postsynaptic potential (EPSP) rate of rise and [Ca]o. Brief presynaptic depolarizing steps, 5-10 ms, presented at 0.5 Hz activated EPSP's of constant amplitude. Inserting a 300-ms pulse (conditioning pulse) between these test pulses potentiated the subsequent test EPSPs. This depolarization-activated potentiation (DAP) lasted for 10-20 s and decayed with a single exponential time course. The decay time course remained invariant with test pulse frequencies ranging from 0.11 to 1.1 Hz. The magnitude and decay time course of DAP were independent of the test pulse amplitudes. The magnitude of DAP was a function of conditioning pulse amplitudes. Large conditioning pulses activated large potentiations, whereas the decay time constants were not changed. The DAP is a Ca-dependent process. When the amplitude of conditioning pulses approached the Ca equilibrium potential, the magnitude of potentiation decreased. Repeated application of conditioning pulses, at 2-s intervals, did not produce additional potentiation beyond the level activated by the first conditioning pulse. Comparison of the conditioning EPSP waveforms activated repetitively indicated that potentiation lasted transiently, 100 ms, during a prolonged release. Possible mechanisms of the potentiation are discussed in light of these new findings.NS-07942 - NINDS NIH HHS; NS-13742 - NINDS NIH HH

The metal insulator transition in cluster dynamical mean field theory: intersite correlation, cluster size, interaction strength, and the location of the transition line

To gain insight into the physics of the metal insulator transition and the effectiveness of cluster dynamical mean field theory (DMFT) we have used one, two and four site dynamical mean field theory to solve a polaron model of electrons coupled to a classical phonon field. The cluster size dependence of the metal to polaronic insulator phase boundary is determined along with electron spectral functions and cluster correlation functions. Pronounced cluster size effects start to occur in the intermediate coupling region in which the cluster calculation leads to a gap and the single-site approximation does not. Differences (in particular a sharper band edge) persist in the strong coupling regime. A partial density of states is defined encoding a generalized nesting property of the band structure; variations in this density of states account for differences between the dynamical cluster approximation and the cellular-DMFT implementations of cluster DMFT, and for differences in behavior between the single band models appropriate for cuprates and the multiband models appropriate for manganites. A pole or strong resonance in the self energy is associated with insulating states; the momentum dependence of the pole is found to distinguish between Slater-like and Mott-like mechanisms for metal insulator transition. Implications for the theoretical treatment of doped manganites are discussed.Comment: 28 pages (single column, double space) 15 figure