Licensing and R&D Investment of Duopolistic Firms with Partially Complementary Technologies

We consider research and development (R&D) investment competition between duopolistic firms that independently invest in two complementary technologies to produce their products. By "partially complementary technologies", we mean that each firm can produce the goods without both technologies but they incur more redundant costs than with both technologies. We derive the investment competition equilibria in R&D of the two technologies with and without a licensing system. By comparing R&D investment levels in the two equilibria, we show that the licensing system discourages R&D investment in most cases; however, it encourages R&D investment in some cases when the duopolistic firms can produce the goods using both technologies. We also show that (cross-) licensing increases the expected social surplus at the symmetric equilibrium.partially complementary technologies, licensing system, duopoly, R&D investment

A Cross-Licensing System Discourages R&D Investments In Completely Complementary Technologies

We consider the research and development (R&D) investment com petition of duopolistic firms in completely complementary technologies. By "completely complementary technologies," we mean that no firm can produce the goods without both of the technologies. We derive the investments competition equilibria in R&D of the two completely complementary technologies with and without a cross-licensing system. By comparing R&D investment levels in the two equilibria, we show that the cross-licensing system discourages the R&D invest ments when the duopolistic firms produce goods by using the two completely complementary technologies.completely complementary technologies, cross-licensing system, R&D investments

CO-0.30-0.07: A Peculiar Molecular Clump with an Extremely Broad Velocity Width

The high velocity dispersion compact cloud CO-0.30-0.07 is a peculiar molecular clump discovered in the central moleculr zone of the Milky Way, which is characterized by its extremely broad velocity emissions ($\sim 145\ \rm{km s^{-1}}$) despite the absence of internal energy sources. We present new interferometric maps of the cloud in multiple molecular lines in frequency ranges of 265--269 GHz and 276--280 GHz obtained using the Sumbmillimeter Array, along with the single-dish images previously obtained with the ASTE 10-m telescope. The data show that the characteristic broad velocity emissions are predominantly confined in two parallel ridges running through the cloud center. The central ridges are tightly anti-correlated with each other in both space and velocity, thereby sharply dividing the entire cloud into two distinct velocity components (+15 km s$^{-1}$ and +55 km s$^{-1}$). This morphology is consistent with a model in which the two velocity components collide with a relative velocity of 40 $\mathrm{km s^{-1}}$ at the interface defined by the central ridges, although an alternative explanation with a highly inclined expanding-ring model is yet to be fully invalidated. We have also unexpectedly detected several compact clumps ($\lesssim 0.1\$pc in radius) likely formed by shock compression. The clumps have several features in common with typical star-forming clouds: high densities ($10^{6.5-7.5}\ \mathrm{cm^{-3}}$), rich abundances of hot-core-type molecular species, and relatively narrow velocity widths apparently decoupled from the furious turbulence dominating the cloud. The cloud CO-0.30-0.07 is possibly at an early phase of star formation activity triggered by the shock impact.Comment: 29 pages, 10 figures, accepted for publication in Ap

Physical Conditions of Molecular Gas in the Galactic Center

We estimated physical conditions of molecular gas in the central molecular zone (CMZ) of the Galaxy, using our CO J=3-2 data obtained with the Atacama Submillimeter Telescope Experiment (ASTE) in conjunction with J=1-0 12CO and 13CO data previously observed with the NRO 45m telescope. The large velocity gradient (LVG) approximation was employed. Distributions of gas density, kinetic temperature, and CO column density are derived as functions of position and velocity for the entire coverage of the CO J=3-2 data. We fairly determined physical conditions for 69 % of data points in the CMZ with >= 1 sigma CO detections. Kinetic temperature was found to be roughly uniform in the CMZ, while gas density is higher in the 120-pc star forming ring than in the outer dust lanes. Physical conditions of high J=3-2/J=1-0 features are also discussed.Comment: 8 pages, 6 figures, to appear in PAS

Forward and Spot Markets for Electricity and Emissions Trading (Japanese)

In recent years there has been growing discussion regarding market designs of emissions trading. This paper examines a model in which emissions trading is introduced in the oligopolistic electricity market, which comprises both forward contracts and spot transactions. In particular we investigate how emissions trading is affected by strategic behaviour in an endogenous framework of forward and spot markets. The problem is defined as an equilibrium problem with equilibrium constraints (EPEC). Simple numerical examples illustrate how strategic behaviour could affect equilibrium outcomes and what effects initial allocations of emissions rights could have on social surplus.

Oligopolistic Competition in the Japanese Wholesale Electricity Market: A Linear Complementarity Approach

Using a linear complementarity approach, we simulate the Japanese wholesale electricity market as a transmission-constrained Cournot market. Following Hobbs (2001), our model adopts the Cournot assumption in the energy market and the Bertrand assumption in the transmission market. The Bertrand assumption means that generators consider transmission charges as being exogenous, which can be interpreted as a kind of bounded rationality. We then present a simulation analysis of the Japanese wholesale electricity market, considering eight areas linked by interconnection transmission lines. Specifically, this paper examines the potential effects of both investment in interconnection transmission lines and the divestiture of dominant players' power plants.

Optimal Transmission Capacity under Nodal Pricing and Incentive Regulation for Transco

This paper examines regulatory incentive mechanisms for efficient investment in the transmission network, taking into account both technological externalities among transmission lines and information asymmetry between the regulator and the transmission company (Transco). First, by adding extra constraints associated with the power flow, we develop an extended price cap mechanism that can internalize technological externalities among transmission lines. We show that this new mechanism induces the Transco to choose the optimal transmission capacity under its budget constraint. An extended form of the Vogelsang and Finsinger (V-F) mechanism is also introduced. Next, we examine the surplus-based scheme with government transfers. We provide a formal analysis of the incremental surplus subsidy (ISS) scheme specifically for the Transco, demonstrating that it induces the Transco to choose the optimal transmission capacity without the budget constraint.