In this paper, we consider the issue of optimal licensing from the viewpoint of a public patent holder having no production facilities when the product market has a Stackelberg leadership structure. We show that fee licensing is always at least as good as royalty licensing for the public patentee maximizing the social welfare. It is also shown that for small innovations, there exists an equilib...

We investigate a mixed duopoly market where a welfare−maximizing public firm competes against a profit−maximizing private firm, using a linear−city location−then−price model with linear transportation costs. We find that, compared with the results in the purely private duopoly case discussed by Hotelling (1929) and d' Aspremont, Gabszewicz, and Thisse (1979), the condition under which price equ...

Motivated by multiple real-world settings, we determine a social welfare-maximizing regulator's tax policies that induce profit-maximizing polluting firm to make green technology choices. Using game-theoretic approach compare the optimal and welfare over two periods under scenarios: (1) regulator committing level for both at beginning of first period; (2) who sets same each period without discl...

In liberalized network industries, competitors can either compete for service using the existing infrastructure (access) or deploy their own capacity (bypass). We revisit this make-or-buy problem making two contributions to the literature. First we analyze both the profit maximizing behavior of an incumbent and the welfare maximizing behavior when the entrant chooses between access and bypass. ...

Firms and Early Retirement: Offers That One Does Not Refuse According to the Hutchens (1999) model, early retirement is not explained as a result of maximizing expected individual utility but rather as a demand-side phenomenon arising from a firm’s profit-maximizing behaviour. Firms enter into contracts with their employees that include clauses about early retirement. In response to demand or t...

This study proposes a new multi-item inventory model with hybrid cost parameters under a fuzzy-stochastic constraint and permissible delay in payment. The price and marketing expenditure dependent stochastic demand and the demand dependent the unit production cost are considered. Shortages are allowed and partially backordered. The main objective of this paper is to determine selling price, mar...

The integration of marketing and demand with logistics and inventories (supply side of companies) may cause multiple improvements; it can revolutionize the management of the revenue of rental companies, hotels, and airlines. In this paper, we develop a multi-objective pricing-inventory model for a retailer. Maximizing the retailer's profit and the service level are the objectives, and shorta...

Applications require the composition of resources to execute in a grid computing environment. The Grid Service Providers (GSPs), the owners of the computational resources, must form Virtual Organizations (VOs) to be able to provide the composite resource. We consider grids as self-organizing systems composed of autonomous, selfinterested GSPs that will organize themselves into VOs with every GS...