Jou, Jyh-Bang; Lee, Tan - In: Financial innovation : FIN 9 (2023) 1, pp. 1-25
This study investigates the design of the royalty rate in a first-price auction across three types of investments: incremental and lumpy with or without an exogenously given intensity. A bidder's investment cost comprises private information. This, together with the stochastic evolution of the...