Input Production Joint Venture

In many industries it is quite common to observe firms delegating the production of essential inputs to independent ventures jointly established with competing rivals. The diffusion of this arrangement and the favourable stance of competition authorities call for the assessment of the social and private desirability of Input Production Joint Ventures (IPJV), which represent a form of input production cooperation, not investigated so far. IPJV can be seen as an intermediate organizational setting lying between the two extremes of vertical integration and vertical separation. Our investigation is based on an oligopoly model with horizontally differentiated goods. We characterize the conditions under which IPJV is privately optimal finding that firms’ incentives may be welfare detrimental. We also provide a rationale for the empirical relevance of IPJV both in terms of its ability to survive and in terms of disengagement incentives.Input Production Joint Venture, Horizontal Differentiation, Oligopoly

Compatibility choice in vertically differentiated technologies

We analyse firms' incentives to provide two-way compatibility between two network goods with different intrinsic qualities. We study how the relative importance of vertical differentiation with respect to the network effect influences the price competition as well as the compatibility choice. The final degree of compatibility allows firms to manipulate the overall differentiation. Under weak network effect, full compatibility may arise: the low quality firm has higher incentives to offer it in order to prevent the rival from dominating the market. Under strong network effect we observe multiple equilibria for consumers' demands. However, in any equilibrium of the full game, coordination takes place on the high quality good which, we assume, always maintains its overall quality dominance.compatibility, vertical differentiation, network effect.

Pitfalls in vertical arrangements

A popular way of obtaining essential inputs requires the establishment of an input production joint venture (IPJV) in the upstream (U) section of the vertical chain of production by firms competing and selling final goods in the downstream (D) section of the vertical chain. In spite of the apparently simple arrangement there are many possible governances for the management of the IPJV according to the ownership structure and to the degree of delegation granted to the IPJV by parent firms. We explore the best sustainable governance arrangement for the IPJV. We address this question in a duopoly framwork and we find a large area of impossible vertical arrangements associated with technological asymmtery. The most likely governance of the vertical arrangment associated to the IPJV is total independence.

Compatibility Choice in vertically differentiated technologies

We analyse firms’ incentives to provide two-way compatibility between two network goods with different intrinsic qualities. We study how the relative importance of vertical differentiation with respect to the network effect influences the price competition as well as the compatibility choice. The final degree of compatibility allows firms to manipulate the overall differentiation. Under weak network effect, full compatibility may arise : the low quality firm has higher incentives to offer it in order to prevent the rival from dominating the market. Under strong network effect we observe multiple equilibria for consumers’ demand. However, in any equilibrium of the full game, coordination takes place on the high quality good which, we assume, always maintains its overall quality dominance.compatibility, vertical differentiation, network effect

Visualizing and Understanding Sum-Product Networks

Sum-Product Networks (SPNs) are recently introduced deep tractable probabilistic models by which several kinds of inference queries can be answered exactly and in a tractable time. Up to now, they have been largely used as black box density estimators, assessed only by comparing their likelihood scores only. In this paper we explore and exploit the inner representations learned by SPNs. We do this with a threefold aim: first we want to get a better understanding of the inner workings of SPNs; secondly, we seek additional ways to evaluate one SPN model and compare it against other probabilistic models, providing diagnostic tools to practitioners; lastly, we want to empirically evaluate how good and meaningful the extracted representations are, as in a classic Representation Learning framework. In order to do so we revise their interpretation as deep neural networks and we propose to exploit several visualization techniques on their node activations and network outputs under different types of inference queries. To investigate these models as feature extractors, we plug some SPNs, learned in a greedy unsupervised fashion on image datasets, in supervised classification learning tasks. We extract several embedding types from node activations by filtering nodes by their type, by their associated feature abstraction level and by their scope. In a thorough empirical comparison we prove them to be competitive against those generated from popular feature extractors as Restricted Boltzmann Machines. Finally, we investigate embeddings generated from random probabilistic marginal queries as means to compare other tractable probabilistic models on a common ground, extending our experiments to Mixtures of Trees.Comment: Machine Learning Journal paper (First Online), 24 page

Intervertebral disc characterization by shear wave elastography: an in-vitro preliminary study

Patient-specific numerical simulation of the spine is a useful tool both in clinic and research. While geometrical personalization of the spine is no more an issue, thanks to recent technological advances, non-invasive personalization of soft tissue’s mechanical properties remains a challenge. Ultrasound elastography is a relatively recent measurement technique allowing the evaluation of soft tissue’s elastic modulus through the measurement of shear wave speed (SWS). The aim of this study was to determine the feasibility of elastographic measurements in intervertebral disc (IVD). An in-vitro approach was chosen to test the hypothesis that SWS can be used to evaluate IVD mechanical properties and to assess measurement repeatability. Eleven oxtail IVDs were tested in compression to determine their stiffness and apparent elastic modulus at rest and at 400 N. Elastographic measurements were performed in these two conditions and compared to these mechanical parameters. The protocol was repeated six times to determine elastographic measurement repeatability. Average SWS over all samples was 5.3 ± 1.0 m/s, with a repeatability of 7 % at rest and 4.6 % at 400 N; stiffness and apparent elastic modulus were 266.3 ± 70.5 N/mm and 5.4 ± 1.1 MPa at rest, respectively, while at 400 N they were 781.0 ± 153.8 N/mm and 13.2 ± 2.4 MPa. Correlations were found between elastographic measurements and IVD mechanical properties; these preliminary results are promising for further in-vivo application.The authors are grateful to the ParisTech BiomecAM chair program on subject-specific musculoskeletal modelling for funding (with the support of Proteor, ParisTech and Yves Cotrel Foundations)

Market integration in network industries

What is the effect of product market integration on the market equilibrium in the presence of international network externalities in consumption? To address this question, we set up a spatial two-country model and we find that the economic forces at work may have an ambiguous effect on prices.compatibility, horizontal differentiation, network effect

Verso il sistema unitario dei servizi per il lavoro = Towards the unitary system of employment services. WP C.S.D.L.E. “Massimo D’Antona”.IT – 351/2018

The development of employment services can be an important factor in supporting the labor market and economic recovery. The new organizational design of the role of public and private actors, introduced by Legislative Decree no. 150/2015, wants to support this development through the promotion of state and regional cooperation. The essay follows the plans of possible unitary work, highlighting the preconditions for the progressive unification of state and regional functions into a system logic. The talk about the organization is accompanied by the underlining of the renewed attention given to the unemployed citizen, whose order now reserves specific attention, a more defined lega

Unions' relative concerns and strikes in wage bargaining

We consider a model of wage determination with private information in a duopoly. We investigate the effects of unions having relative concerns on the negotiated wage and the strike activity. We show that an increase of unions' relative concerns has an ambiguous effect on the strike activity.relative position, wage bargaining, private information, strike activity