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 … seller from setting the exact dates of investment with the winner. However, the seller can set the royalty rate to equate the … intensity, the seller can set a lower royalty rate on incremental investment because she can collect additional royalty payments …