A new two-component system with cubic nonlinearity and linear dispersion:
m
t
=
b
u
x
+
1
2
[
m
(
u
v
−
u
x
v
x
)
]
x
−
1
2
m
(
u
v
x
−
u
x
v
)
,
n
t
=
b
v
x
+
1
2
[
n
(
u
v
−
u
x
v
x
)
]
x
+
1
2
n
(
u
v
x
−
u
x
v
)
,
m
=
u
−
u
x
x
,
n
=
v
−
v
x
x
,
where
b
is an arbitrary real constant, is proposed in this paper. This system is shown integrable with its Lax pair, bi-Hamiltonian structure and infinitely many conservation laws. Geometrically, this system describes a non-trivial one-parameter family of pseudo-spherical surfaces. In the case
b
=0, the peaked soliton (peakon) and multi-peakon solutions to this two-component system are derived. In particular, the two-peakon dynamical system is explicitly solved and their interactions are investigated in details. Moreover, a new integrable cubic nonlinear equation with linear dispersion
m
t
=
b
u
x
+
1
2
[
m
(
|
u
|
2
−
|
u
x
|
2
)
]
x
−
1
2
m
(
u
u
x
∗
−
u
x
u
∗
)
,
m
=
u
−
u
x
x
,
is obtained by imposing the complex conjugate reduction
v
=
u
* to the two-component system. The complex-valued
N
-peakon solution and kink wave solution to this complex equation are also derived.