Industrial economic aspects of Belgian price regulation.

Regulation;

Industrial organization and the economics of business strategy.

Industrial organization (IO) has an important role to play in inspiring the competition and regulation policies of the government. At the same it can be used to clarify the economics of business strategies. The idea here is not to give a comprehensive review, but to draw attention to some striking tendencies, prospects and problems of the field of IO as a source of inspiration for competitive strategies. A first focus will be on credible market strategies and asymmetric information, with implications for internal organization, vertical foreclosure and markets with switching costs. A second point will look at detection of not so obvious possibilities, as there are lower prices with cooperation, disadvantageous mergers, positive side effects for rivals, and disadvantageous price discrimination. Finally some approaches will be discussed to problems concerning high requirements on rationality and lack of robustness. An example will be discussed of a search for robustness in strategic investment models in oligopoly settings with leaders and followers.Economics; Strategy;

Innovation by leaders without winner-take-all.

In innovative races with winner takes all, leading firms invest less than each follower, given exogenous entry (Reinganum, 1985). But with endogenous entry this result is reversed (Etro, 2004). It is argued here that sharing of rewards between the players may alter these predictions.Firms; Free entry; Innovation; IT; Market sharing; Patent race; Prediction; Predictions;

Leader, follower. Strategic investments with asymmetric spillovers.

This paper analyzes the strategic incentives of ¯rst and second movers in sequential invest- ment games with Stackelberg competition and price leadership on the output market. The study shows that the follower can invest more than the leader when the outgoing spillover from the leader to the follower is su±ciently high, taking into account the outgoing spillover of the follower. This result tends to apply in quantity and price settings. It is also shown that when externalities have opposite signs, the ¯rm with the lowest outgoing spillover is invest- ing most. However, with externalities that have the same sign, the asymmetry of spillovers determines who invests most. A beginning is made with the investigation of the robustness of the tendencies reported.Investments; Investment; Spillovers; Incentives; Competition; Market; Studies; Price setting; Sign; Robustness;

How choice reveals and shapes expected hedonic outcome

Humans tend to modify their attitudes to align with past action. For example, after choosing between similarly valued alternatives, people rate the selected option as better than they originally did, and the rejected option as worse. However, it is unknown whether these modifications in evaluation reflect an underlying change in the physiological representation of a stimulus' expected hedonic value and our emotional response to it. Here, we addressed this question by combining participants' estimations of the pleasure they will derive from future events, with brain imaging data recorded while they imagined those events, both before, and after, choosing between them. Participants rated the selected alternatives as better after the decision stage relative to before, whereas discarded alternatives were valued less. Our functional magnetic resonance imaging findings reveal that postchoice changes in preference are tracked in caudate nucleus activity. Specifically, the difference in blood oxygenation level-dependent (BOLD) signal associated with the selected and rejected stimuli was enhanced after a decision was taken, reflecting the choice that had just been made. This finding suggests that the physiological representation of a stimulus' expected hedonic value is altered by a commitment to it. Furthermore, before any revaluation induced by the decision process, our data show that BOLD signal in this same region reflects the choices we are likely to make at a later time

Self-propulsion through symmetry breaking

In addition to self-propulsion by phoretic mechanisms that arises from an asymmetric distribution of reactive species around a catalytic motor, spherical particles with a uniform distribution of catalytic activity may also propel themselves under suitable conditions. Reactive fluctuation-induced asymmetry can give rise to transient concentration gradients which may persist under certain conditions, giving rise to a bifurcation to self-propulsion. The nature of this phenomenon is analyzed in detail, and particle-level simulations are carried out to demonstrate its existence.Comment: 6 pages, 3 figures. Appeared in EPL (Europhysics Letters

Subband coding of digital audio signals without loss of quality

A subband coding system for high quality digital audio signals is described. To achieve low bit rates at a high quality level, it exploits the simultaneous masking effect of the human ear. It is shown how this effect can be used in an adaptive bit-allocation scheme. The proposed approach has been applied in two coding systems, a complex system in which signal is split into 26 subbands, each approximately one third of an octave wide, and a simpler 20-band system. Both systems have been designed for coding stereophonic 16-bit compact disk signals with a sampling frequency of 44.1 kHz. With the 26-band system high-quality results can be obtained at bit rates of 220 kb/s. With the 20-band system, similar results can be obtained at bit rates of 360 kb/