Basov, Suren; Erkal, Nisvan; Minehart, Deborah; … - 2024
We consider a model of innovation that distinguishes between ideas and innovations. While innovation responds to … incentives, ideas are a scarce resource that provide an exogenous constraint on the rate of innovation. We investigate how the … optimal reward structure is shaped by the scarcity of ideas. Substitute ideas for innovation in the model arrive to random …
