Optimal Enforcement for Content Industries under Positive External Effects of Piracy

Content industries have several profit sources that positively interact with one another, and piracy affects them not only negatively but also positively. For copyright holders, choosing to allow piracy depends upon its total external effects. This paper proves that in such case the profit function is convex with respect to the level of enforcement. This paper shows a convex profit function with respect to the level of enforcement. The convexity leads to a corner solution of optimal enforcement for copyright holders. Which corner solution is selected depends on the relative size of the sub-market, and no enforcement is profitable if the submarket size is relatively large. This result compensates for a shortcoming of discussions that assume only two options regarding the level of enforcement, zero or perfect enforcement.

Deriving Economic Values for Female Reproductive Traits in Lifetime Carcass Production of Japanese Black Cows Using Deterministic Profit Function

Improving reproductive efficiency is required to strengthen the production base of high-quality Wagyu beef in Japan. We developed a deterministic profit function (P) for lifetime carcass production of Japanese Black cows to calculate economic values (EVs) for representative female reproductive and carcass traits. The total calving number per cow was expressed using the age at first calving (AFC) and calving interval (CI). Revenues and costs were calculated from calf market price (CaP) and carcass unit price (CUP). A cubic regression equation was developed with CaP as the response variable and calf market weight as the explanatory variable. A multiple linear regression equation was developed with CUP as the response variable and five carcass traits as explanatory variables. EVs were calculated using the first-order partial derivatives of P. The first-order partial derivative of CI was a function of CI with the quadratic term of CI in the denominator. Values of EVs for AFC and CI were negative, suggesting that earlier AFC and shorter CI increase the lifetime profit of Japanese Black cows through producing higher numbers of feeder cattle per cow. However, this might bring benefit to only calf-producing farmers. The results would contribute to achieving sustainable high-quality Wagyu beef production.

Input Demand and Output Supply Elasticities of Coarse Cereals in India: A Translog Profit and Sure Approach

Aims: The aim was to estimate the output supply and input demand elasticities of maize, jowar and bajra production, using the restricted normalised translog profit function, for the major producing states of India (Andhra Pradesh, Maharashtra and Rajasthan). Study Design: A stratified multi-stage random sampling design was adopted for carrying out the sampling. Place and Duration of Study: The study pertains to cross sectional plot level data for the period 2013-14 and 2017-18. The study is based on secondary data, collected from Directorate of Economics & Statistics, Ministry of Agriculture, Government of India. Methodology: For the present studied crops (maize, jowar and bajra), those states were selected which covered maximum area, i.e, 85% of the total area under the cultivation. Socio-economic data of farmers such as age, sex, level of education, occupation, size of landholding were collected. The translog profit function approach was used as the econometric technique to estimate output supply, and input demand functions. Labour, fertiliser and seeds are taken as variable inputs. Statistical software STATA version 16 was used for the analysis. Results: The results suggest that the changes in market prices of inputs and output significantly affect the farmers’ profits, crop produce supply and the use of resources in the cultivation of these crops. The supply elasticities of maize, jowar and bajra with respect to its own prices are positive and statistically significant indicating that increase in support prices can boost the supply of these nutri-grains and farmers profits. Labour demand for these crops in the country is elastic and significant to its own price. Conclusion: During both the periods, 2013-14 (typical monsoon year) and 2017-18 (drought year), the elasticities derived are statistically robust as almost all of them carried compatible signs and in line with the theory. Promoting these crops can contribute to labour absorption.

Stability Analysis and Harvesting Effort Predator Prey Populations Model Holling Type III with Maximum Profit

In this paper discussed stability analysis and harvesting effort at second predator prey populations model Holling type III with maximum profit. The step this research is to determine the equilibrium point, linearize the model, stability analysis of the equilibrium point, and numerical simulation. Result shows that obtained an interior point T𝐸2∗(𝑁1∗,𝑁2∗) that asymptotic stable based on Hurwitz stability test then obtained maximum profit from exploitation harvesting effort of second predator prey populations. This second populations will always exist, even though exploited with harvesting effort done by humans. Harvesting effort of second predator-prey populations given maximum profit (𝜋𝑚𝑎𝑥) that occur on critical points of surface profit function

Szennyezési jogok hatása a vállalati termelési stratégiára = Effect of pollution rights on production strategy of firm

A cikk a szennyezési jogok bevezetését vizsgálja a mikroökonómia standard vállalatára. A komparatív statika módszerével vizsgáljuk a termelő vállalat lehetséges reakcióit a szennyezési jog bevezetésére. A vállalatok stratégiája a szennyezési jog bevezetésére a technológia változatlanul hagyása, vagy megváltoztatása lehet. Az egyes esetekben arra keresünk választ, hogy hogyan változik a vállalat nyeresége a bevezetés előtti állapothoz képest, és ez milyen szennyezési stratégiával jár. Szennyezési jogot elad-e, vagy vesz a vállalat a szennyezési jogok piacán? = The paper deals with the effect of an introduction of tradable permits on the production strategy of a firm. It is assumed that the firm will maximize its profit. After introducing the emission trading the profit function will contain the linear emission procurement/selling costs. We will compare the optimal production strategy before tradable permits and after that. The mathematical investigation is based on the nonlinear mathematical programming.

The Optimal System for Complex Series-Parallel Systems with Cold Standby Units: A Comparative Analysis Approach

The purpose of this research is to propose three reliability models (configurations) with standby units and to study the optimum configuration between configurations analytically and numerically. The chapter considered the need for 60 MW generators in three different configurations. Configuration 1 has four 15 MW primary units, two 15 MW cold standby units and one 30 MW cold standby unit; Configuration 2 has three 20 MW primary units, three 20 cold standby units; Configuration 3 has two 30 MW primary units and three 30 MW cold standby units. Some reliability features of series–parallel systems under minor and complete failure were studied and contrasted by the current. Failure and repair time of all units is assumed to be exponentially distributed. Explanatory expressions for system characteristics such as system availability, mean time to failure (MTTF), profit function and cost benefits for all configurations have been obtained and validated by performing numerical experiments. Analysis of the effect of different system parameters on the function of profit and availability has been carried out. Analytical comparisons presented in terms of availability, mean time to failure, profit function and cost benefits have shown that configuration 3 is the optimal configuration. This is supported by numerical examples in contrast to some studies where the optimal configuration of the system is not uniform as it depends on some system parameters. Graphs and sensitivity analysis presented reveal the analytical results and accomplish that Configuration 3 is the optimal in terms of design, reliability physiognomies such as availability of the system, mean time to failure, profit and cost benefit. The study is beneficial to engineers, system designers, reliability personnel, maintenance managers, etc.

Economic Efficiency of Mango Cultivator in The Southern Vietnam

The paper employed a Cobb-Douglas and translog of stochastic frontier profit function to measure the level of economic efficiency and its determinants. Structured questionnaires were used to collect data from 1,889 of sampling observations (591 for season 1, 678 for season 2, and 620 for season 3) randomly selected from designated locations in the study area. Difference of the study compared to past researches related to tropical fruits analyzed efficiency of three seasons instead of only focusing on efficiency of one season or total a year. The study established a mean economic efficiency of 26.19% in season 1, 27.15% in season 2, and 24.62% in season 3. The paper found out positive determinants of economic efficiency were farming experience, wrapping bag, market access among three seasons; education in season 1 and plant density in season 1 and 2. By contrast, the constraints to profit of mango producers were age, and payment for agro-input wholesale on ending of season in three seasons; credit access and classifying sale in first and second seasons; education in second and third seasons; plant density in season 3. Based on these findings, policy makers should focus on effective inputs models that would boost profit efficiency through conducting regular workshops and orchard demonstrations on using input materials effectively. More so, farmers should design mango gardens with appropriate trees density as well as encourage gardeners to use bags for wrapping mango fruits in farming in order to increase economic efficiency.

Dynamic Demand and Pricing Inventory Model for Non-Instantaneous Deteriorating Items

In this model, an inventory model for deteriorating products with dynamic demand is developed under time-dependent selling price. The selling price is supposed to be a time-dependent function of initial price of the products and the permissible discount rate at the time of deterioration. The object is sold with the constant rate in the absence of deterioration and is the exponential function of discount rate at the time; deterioration takes place. Here, the demand not only dependent on the selling price but also on the cumulative demand that represents the saturation and diffusion effect. First, an inventory model is formulated to characterize the profit function. The Classical optimization algorithm is used to solve the optimization problem. The objective is to maximize the total profit of the retailers with respect to the initial selling price and cycle time. Concavity of the objective function is discussed through graphs. At last, a sensitivity analysis is performed by changing inventory parameters and their impact on the decision variables i.e. (initial price, cycle time) together with the profit function.

Interrelationships between Prey and Predators and How Predators Choose Their Prey to Maximize Their Utility Functions

In this work, we model the relationship between prey and predators by studying the interactive behavior of this prey-predator model and using the change of prey. The objective is to maximize the profit function of each predator by seeking the strategy provided by each predator to maximize its profit. To do so, we maximize this utility function being constrained by balance equations between biomass and trophic, and we show that this last problem is completely equivalent to finding the generalized Nash equilibrium point. To calculate it, we use the conditions of Karush-Kuhn-Tucker and we show that it is indeed a linear complementarity problem.

Nonparametric Learning Algorithms for Joint Pricing and Inventory Control with Lost Sales and Censored Demand

We consider a joint pricing and inventory control problem in which the customer’s response to selling price and the demand distribution are not known a priori. Unsatisfied demand is lost and unobserved, and the only available information for decision making is the observed sales data (also known as censored demand). Conventional approaches, such as stochastic approximation, online convex optimization, and continuum-armed bandit algorithms, cannot be employed, because neither the realized values of the profit function nor its derivatives are known. A major challenge of this problem lies in that the estimated profit function constructed from observed sales data is multimodal in price. We develop a nonparametric spline approximation–based learning algorithm. The algorithm separates the planning horizon into a disjoint exploration phase and an exploitation phase. During the exploration phase, a spline approximation of the demand-price function is constructed based on sales data, and then the corresponding surrogate optimization problem is solved on a sparse grid to obtain a pair of recommended price and target inventory level. During the exploitation phase, the algorithm implements the recommended strategies. We establish a (nearly) square-root regret rate, which (almost) matches the theoretical lower bound.