Past work has shown that failure tolerance by principals has the potential to stimulate innovation, but has not examined how this affects which projects principals will start. We demonstrate that failure tolerance has an equilibrium price ― in terms of an investor's required share of equity...

It has been demonstrated that innovative business models designed to serve the population at the "base of the pyramid" are an effective means to create employment and improve quality of life. However, the effect that various levels of poverty have on the viability of these business models is not...

Tournaments are widely used in the economy to organize production and innovation. We study individual data on 2,775 contestants in 755 software algorithm development contests with random assignment. The performance response to added contestants varies non-monotonically across contestants of...

Digital technologies have led to the emergence of many platforms in our economy today. In certain platform networks, buyers in one market purchase services from providers in many other markets, whereas other platform networks may comprise local clusters in which buyers primarily purchase...