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This paper considers the optimal design of dynamic research contests when the buyer can set time-dependent prizes. We derive the buyer-optimal contest and show that it entails an increasing prize schedule. Remarkably, this allows the buyer to implement a global stopping rule. In particular, the...
Persistent link: https://www.econbiz.de/10011538596
This paper analyzes the design of innovation contests when the quality of an innovation depends on the research approach, but the best approach is unknown. Inducing a variety of research approaches generates an option value. We show that suitable contests can induce such variety. The...
Persistent link: https://www.econbiz.de/10011993710
This paper analyzes the design of innovation contests when the quality of an innovation depends on the research approach, but the best approach is unknown. Inducing a variety of research approaches is desirable because it generates an option value. We show that suitable contests can induce such...
Persistent link: https://www.econbiz.de/10011667487
Persistent link: https://www.econbiz.de/10011787617
This paper studies the optimal design of dynamic research contests. We introduce interim transfers, which are paid in every period while the contest is ongoing, to an otherwise standard setting. We show that a contest where: (i) the principal can stop the contest in any period, (ii) a constant...
Persistent link: https://www.econbiz.de/10012052584
Persistent link: https://www.econbiz.de/10011729941
This paper provides a novel theory of research joint ventures for financially constrained firms. When firms choose R …
Persistent link: https://www.econbiz.de/10013277082