Bhattacharya, Shantanu; Gaba, Vibha; Hasija, Sameer - 2012
We analyze optimal contractual arrangements in a bilateral R and D partnership between a risk-averse provider that … conducts early-stage research, followed by a regulatory verification stage, and a risk-neutral client that performs late … inherent incentive alignment problems of double-sided moral hazard, risk aversion and holdup. We compare the efficacy of …