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This paper studies a game of strategic experimentation in which the players have access to two-armed bandits where the risky arm distributes lumpsum payoffs according to a Poisson process with unknown intensity. Because of free-riding, there is an inefficiently low level of experimentation in...
Persistent link: https://www.econbiz.de/10011410236
. Consistent with our model, we find significant willingness to pay for ignorance, which we calibrate against morally neutral …
Persistent link: https://www.econbiz.de/10011987011
develop a choice model of survey response behavior under the assumption that the respondent has imperfect self-knowledge about … her individual characteristics. In panel data, the model predicts that the variance in responses for different … observed response patterns. Second, we develop a consistent and unbiased estimator for self-knowledge based on the model. Third …
Persistent link: https://www.econbiz.de/10012597266
If one cluster increases local competitiveness, can politicians, by interlinking clusters, achieve an even better effect at the state level? To answer this question, the paper analyzes the Cluster Initiativeʺ introduced in 1999 by the Bavarian State Government. The purpose of the initiative was...
Persistent link: https://www.econbiz.de/10003790767
This paper examines how product market competition affects firms' timing of adopting a new technology as well as whether the market provides sufficient adoption incentives. It shows that adoption dates differ not only among symmetric firms but also among markets with Cournot and Bertrand...
Persistent link: https://www.econbiz.de/10003854416
The real option theory provides a useful tool to evaluate an R&D investment under uncertainty because, unlike the NPV (Net Present Value), it considers the managerial flexibility that may be expand the investment opportunity value. However, most R&D investment projects are open to competing...
Persistent link: https://www.econbiz.de/10003872189
The paper considers a climate change growth model with three R&D sectors dedicated to energy, backstop and CCS (Carbon … problem and we implement it by computing the vector of optimal tools. Finally, we illustrate the theoretical model using some …
Persistent link: https://www.econbiz.de/10003922939
We analyze the growth and welfare effects of globalization in a dynamic Schumpeterian North-South product-cycle model …
Persistent link: https://www.econbiz.de/10003923503
socially desirable achievements. A game-theoretic model makes it possible to demonstrate the above results and to characterise …
Persistent link: https://www.econbiz.de/10011399680
This paper introduces dynamics in the R&D to innovation and innovation to productivity relationships, which have mostly been estimated on cross-sectional data. It considers four nonlinear dynamic simultaneous equations models that include individual effects and idiosyncratic errors correlated...
Persistent link: https://www.econbiz.de/10009764446