In this paper we study "investment tournaments," a class of decision problems that involve gradual allocation of … investment among several alternatives whose values are subject to exogenous shocks. The decision-maker's payoff is determined by … an early stage of the tournament in a bid to capture a larger share of employer's investment, such as mentoring …

establish a causal relationship between competition and investment. Within manufacturing, we show that industry leaders invest … competition is partly responsible for this phenomenon. We use a combination of natural experiments and instrumental variables to … and innovate more in response to exogenous changes in Chinese competition. Beyond manufacturing we show that excess entry …

In this paper, we design two laboratory experiments to analyze the causal effects of competition on step …-by-step innovation. Innovations result from costly R&D investments and move technology up one step. Competition is inversely measured by … that increased competition leads to a significant increase in R&D investments by neck-and-neck firms. Second, increased …

markets lead to outcomes (prices and investment) that are not first-best, it even fails to achieve the second-best optimum … given the constraint of time-invariant pricing. We then show that attempts to correct the level of investment through taxes … necessarily reduce capacity investment, and it is likely to harm customers that are already on RTP …

We study a market for funding real investment in which valuation creates information on which adverse selection can …

context of international trade. An influential hypothesis states that export pioneers are too few relative to social optimum …