LICENSING BY OUTSIDE INNOVATOR IN HOTELLING MODEL REVISITED

2021 ◽  
pp. 2150041
Author(s):  
YUANZHU LU ◽  
FULAN WU
Keyword(s):  
Technology Licensing ◽  
Economic Modelling ◽  
Hotelling Model ◽  
Royalty Rates ◽  
Optimal Technology ◽  
The Cost ◽  
Cost Differentials ◽  
Fixed Fee

This paper extends Banerjee and Poddar [Banerjee, S and S Poddar (2019). ‘To sell or not to sell’: Licensing versus selling by an outside innovator. Economic Modelling, 76, 293–304] by lifting the cap on per unit royalty rates in the cases of royalty licensing and two-part tariff licensing. We reconsider the optimal technology licensing contract by an outside innovator facing two heterogeneous licensees in a standard Hotelling framework. Our findings show that the optimal licensing policy could be fixed fee to the efficient firm, or two-part tariff to both firms (pure royalty to both firms), or two-part tariff to the efficient firm, depending upon the cost differentials between the firms and the size of innovation.

scholarly journals Technology Licensing between Rival Firms in Presence of Asymmetric Information

2017 ◽  
Vol 17 (1) ◽  
Author(s):  
Neelanjan Sen ◽  
Sukanta Bhattacharya
Keyword(s):  
Asymmetric Information ◽  
Low Cost ◽  
Technology Licensing ◽  
Cournot Duopoly ◽  
Cost Difference ◽  
Cost Information ◽  
Rival Firms ◽  
The Cost ◽  
Duopoly Market ◽  
Fixed Fee

AbstractThis paper investigates the possibility of licensing between rival firms in a Cournot duopoly market. Unlike Heywood, Li, and Ye (2014. “Per Unit vs. Ad Valorem Royalties under Asymmetric Information.” International Journal of Industrial Organization 37:38–46), the cost information of the licensee is private in the pre-licensing stage. If inspection of the licensee’s technology is not possible by the licensor i) technology is never transferred from the low-cost firm (licensor) to the high-cost firm (licensee) via fixed-fee and ii) in the case of royalty licensing technology will be transferred only if the cost difference between the firms is sufficiently high. Moreover, under fixed-fee and royalty licensing, the licensee will always allow the licensor to inspect its technology, if inspection is possible. If inspection is undertaken by the licensor, technology will be transferred i) if the cost difference is low via fixed fee and ii) always via royalty.

Baseload power potential from optimally-configured wind, solar and storage power plants across the United States

2020 ◽  
Author(s):  
Joshua D Rhodes ◽  
Aditya Choukulkar ◽  
Brianna Cote ◽  
Sarah A McKee ◽  
Christopher T M Clack
Keyword(s):  
United States ◽  
Energy Storage ◽  
Power Plants ◽  
Cost Optimization ◽  
The United States ◽  
Solar Pv ◽  
Wholesale Market ◽  
Optimal Technology ◽  
Current Price ◽  
The Cost

Abstract In the present paper, we assessed the potential for local wind, solar PV, and energy storage to provide baseload (constant, uninterrupted) power in every county of the contiguous United States. The amount of available capacity between 2020 and 2050 was determined via a least-cost optimization model that took into account changing costs of constituent technologies and local meteorological conditions. We found that, by 2050, the potential exists for about 6.8 TW of renewable baseload power at an average cost of approximately $50 / MWh, which is competitive with current wholesale market rates for electricity. The optimal technology configurations constructed always resulted in over two hours of emergency energy reserves, with the amount increasing as the price of energy storage falls. We also found that, given current price decline trajectories, the model has a tendency to select more solar capacity than wind over time. A second part of the study performed three million simulations followed by a regression analysis to generate an online map-based tool that allows users to change input costs assumptions and compute the cost of renewable baseload electricity in every contiguous US county.

scholarly journals Hybrid Input-Output Analysis of Embodied Carbon and Construction Cost Differences between New-Build and Refurbished Projects

2018 ◽  
Vol 10 (9) ◽  
pp. 3229 ◽  
Author(s):  
Craig Langston ◽  
Edwin Chan ◽  
Esther Yung
Keyword(s):  
Hong Kong ◽  
Life Cycle ◽  
Construction Cost ◽  
Embodied Energy ◽  
Output Analysis ◽  
Embodied Carbon ◽  
The Cost ◽  
Cost Differences ◽  
Cost Differentials ◽  
Strong Linear Relationship

Refurbishing buildings helps reduce waste, and limiting the amount of embodied carbon in buildings helps minimize the damaging impacts of climate change through lower CO2 emissions. The analysis of embodied carbon is based on the concept of life cycle assessment (LCA). LCA is a systematic tool to evaluate the environmental impacts of a product, technology, or service through all stages of its life cycle. This study investigates the embodied carbon footprint of both new-build and refurbished buildings to determine the embodied carbon profile and its relationship to both embodied energy and construction cost. It recognizes that changes in the fuel mix for electricity generation play an important role in embodied carbon impacts in different countries. The empirical findings for Hong Kong suggest that mean embodied carbon for refurbished buildings is 33–39% lower than new-build projects, and the cost for refurbished buildings is 22–50% lower than new-build projects (per square meter of floor area). Embodied carbon ranges from 645–1059 kgCO2e/m2 for new-build and 294–655 kgCO2e/m2 for refurbished projects, which is in keeping with other studies outside Hong Kong. However, values of embodied carbon and cost for refurbished projects in this study have a higher coefficient of variation than their new-build counterparts. It is argued that it is preferable to estimate embodied energy and then convert to embodied carbon (rather than estimate embodied carbon directly), as carbon is both time and location specific. A very strong linear relationship is also observed between embodied energy and construction cost that can be used to predict the former, given the latter. This study provides a framework whereby comparisons can be made between new-build and refurbished projects on the basis of embodied carbon and related construction cost differentials into the future, helping to make informed decisions about which strategy to pursue.

scholarly journals Cost Differentials between E-Books and Print in Academic Libraries

2015 ◽  
Vol 76 (1) ◽  
pp. 6-18 ◽  
Author(s):  
Timothy P. Bailey ◽  
Amanda L. Scott ◽  
Rickey D. Best
Keyword(s):  
Academic Libraries ◽  
Public Libraries ◽  
Electronic Resources ◽  
Auburn University ◽  
The Mean ◽  
The Cost ◽  
Commercial Press ◽  
Mean Cost ◽  
Cost Differentials ◽  
Initial Price

Academic libraries continue to face funding pressures compounded by the need to provide students with access to electronic resources, both in journal and book formats. With space constraints and the need to repurpose library space to other uses, libraries must carefully examine the move to e-only formats for books to determine if the format makes reasonable economic sense.A survey conducted at Auburn University at Montgomery (AUM) has confirmed for academic libraries the work of Gray and Copeland on e-books being more expensive than print for public libraries. For AUM, the mean cost for an e-book is significantly higher than for the print counterpart of that title. The cost differentials between the two formats show e-books as being consistently higher than print in initial price. This consistency holds true across all LC classifications, regardless of whether or not the title is published by a university press or a commercial press.

scholarly journals Financial Implications of Different Interpretations of ACGME Anesthesiology Program Requirements for Rotations in the Operating Room

2013 ◽  
Vol 5 (2) ◽  
pp. 315-319 ◽  
Author(s):  
Mark E. Backeris ◽  
Patrick J. Forte ◽  
Shawn T. Beaman ◽  
David G. Metro
Keyword(s):  
Operating Room ◽  
Resident Education ◽  
Local Market ◽  
Time Model ◽  
Certified Registered Nurse Anesthetist ◽  
Resident Work ◽  
The Cost ◽  
The Impact ◽  
Certified Registered Nurse ◽  
Cost Differentials

Abstract Background The Accreditation Council for Graduate Medical Education (ACGME) standards for resident education in anesthesiology mandate required rotations including rotations inside the operating room (OR). When residents complete rotations outside the OR, other providers must be used to maintain the OR's clinical productivity. Objective We quantified and compared the costs of replacing residents by using two different working patterns that are compliant with the ACGME anesthesiology program requirements: (1) the minimum amount of time in the OR, and (2) working the maximum amount of time permitted in the OR. Methods We calculated resident replacement costs over a 36-month residency period in both a minimum and maximum OR time model. We used a range of Certified Registered Nurse Anesthetist (CRNA) pay scales determined by a local market analysis for cost comparisons. Results Depending on CRNA pay rates, the cost differentials to replace a resident in the OR between the minimum and maximum OR time models ranged from $236,000 to $581,876, assuming a 50-hour resident work week, and $373,400 to $931,001, assuming an 80-hour resident work week. This cost was per resident over the entire 3 years of their residency. Conclusions Varying the amount of time residents work in the OR (as allowed under ACGME program requirements) has significant financial implications over a 36-month anesthesiology residency. The larger the residency, the more significant will be the impact on the department and sponsoring institution.

scholarly journals Cost-effectiveness and value-based prices of the 9-valent human papillomavirus vaccine for the prevention of cervical cancer in China: an economic modelling analysis

BMJ Open ◽  
2019 ◽  
Vol 9 (11) ◽  
pp. e031186 ◽  
Author(s):  
Y Jiang ◽  
Weiyi Ni ◽  
Jing Wu
Keyword(s):  
Cervical Cancer ◽  
Human Papillomavirus ◽  
Cost Effectiveness ◽  
Hpv Vaccine ◽  
Cost Effective ◽  
Sensitivity Analyses ◽  
Base Case ◽  
Economic Modelling ◽  
Current Price ◽  
The Cost

ObjectivesTo evaluate the cost-effectiveness of the 9-valent human papillomavirus (HPV) vaccine for the prevention of cervical cancer in China.DesignHealth economic modelling using the Papillomavirus Rapid Interface for Modelling and Economics (PRIME) model populated with China-specific data.SettingIndividual cervical cancer prevention in China using the 9-valent HPV vaccine from the perspective of private sector purchasers in relation to receiving other HPV vaccines and not receiving vaccination for 16-year-old girls in China who had not been previously infected with HPV.ParticipantsNot applicable.InterventionsVaccination using the 9-valent, the quadrivalent and the bivalent vaccines.Primary outcome measureIncremental costs per disability-adjusted life year (DALY) prevented.ResultsIn the base case, the incremental costs per DALY prevented were, respectively, US$35 000 and US$50 455 compared with the quadrivalent and the bivalent vaccines, both of which were above the cost-effective threshold of US$25 920/DALY prevented. To be cost-effective in these comparisons, the 9-valent vaccine should be priced at $550 and $450 for the full doses, respectively. To be highly cost-effective, the price thresholds were $435 and $335. The incremental costs per DALY prevented in relation to no vaccination was US$23 012, making the 9-valent vaccine marginally cost-effective. The results were robust in most one-way sensitivity analyses including changing vaccination age to 13 and 26 years.ConclusionsAt the current price, the 9-valent HPV vaccine is not cost-effective compared with the quadrivalent and the bivalent vaccines for young girls in China who had not been previously infected with HPV. Policymakers and clinicians should keep potential vaccine recipients informed about the economic profile of the 9-valent vaccine and carefully consider expanding its use in China at the current price.

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