Does sequential decision-making trigger collective investment in automobile R&D? Experimental evidence
We conduct a framed laboratory experiment to gain in-depth insights on factors that drive collective research and development efforts among firms located along the automotive value chain. In particular, we employ a public goods experiment and analyze the influence of sequential decision-making on the willingness to engage in cooperation and on economic welfare. By using a linear value chain setting with three suppliers and one OEM, we analyze vertical R&D cooperation. Our results reveal that contributions increase in situations with sequential decision-making and that sequential decisions increase the overall welfare, even in case of unequally distributed R&D budgets.
Year of publication: |
2018
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Authors: | Buchmann, Tobias ; Haering, Alexander ; Kudic, Muhamed ; Rothgang, Michael |
Publisher: |
Essen : RWI - Leibniz-Institut für Wirtschaftsforschung |
Subject: | public goods experiment | collective innovation | automobile industry | value chain | innovation barriers | sequential decision making |
Saved in:
freely available
Series: | Ruhr Economic Papers ; 785 |
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Type of publication: | Book / Working Paper |
Type of publication (narrower categories): | Working Paper |
Language: | English |
ISBN: | 978-3-86788-913-1 |
Other identifiers: | 10.4419/86788913 [DOI] 1046396110 [GVK] hdl:10419/191057 [Handle] RePEc:zbw:rwirep:785 [RePEc] |
Classification: | C92 - Laboratory; Group Behavior ; D79 - Analysis of Collective Decision-Making. Other ; O31 - Innovation and Invention: Processes and Incentives |
Source: |
Persistent link: https://www.econbiz.de/10011954998