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take this into account and may bid in a way that conceals their private information until the last auction is played. The …
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The literature on R&D contests implicitly assumes that contestants submit their innovation regardless of its value. This ignores a potential adverse selection problem. The present paper analyzes the procurement of innovations when the procurer cannot commit to never bargain with innovators who...
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those who lose the auction. Firms' bids are dual signals of their cost reductions: the winning bid signals the own cost … reduction to rival oligopolists, whereas the losing bid influences the beliefs of the innovator who uses that information to set …
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imperfect signals of the expected cost reduction; after the auction the winning bid is made public. Bidders may signal strength …
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first-price auction, regardless of whether firms observe the synergy parameter or only the winning bid before they play the …
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