The Kondo effect is examined in a quantum dot embedded in an Aharonov-Bohm (AB) ring when the size of the AB ring is much smaller than the Kondo cloud. Using the scaling method, an analytical expression is given for the Kondo temperature Tk, as a function of the AB phase φ for the magnetic flux penetrating the ring. Tk is significantly modulated by the flux. Tk is minimal when φ 0 and maximal when φ π. The scaling method also yields the logarithmic corrections to the conductance at finite temperatures of T ≫ Tk.
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