nep-tid New Economics Papers
on Technology and Industrial Dynamics
Issue of 2010‒10‒23
two papers chosen by
Rui Baptista
Technical University of Lisbon

  1. Innovation by Entrants and Incumbents By Daron Acemoglu; Dan Vu Cao
  2. Information Disclosure in Innovation Contests By Thomas Rieck

  1. By: Daron Acemoglu; Dan Vu Cao
    Date: 2010–10–08
  2. By: Thomas Rieck
    Abstract: In innovation contests, the progress of the competing firms in the innovation process is usually their private information. We analyze an innovation contest in which research firms have a stochastic technology to develop innovations at a fixed cost, but their progress is publicly announced. We make a comparison with the case of no information revelation: if the progress is disclosed, the expected profit of the firms is higher, but the expected profit of the sponsor is lower. Additionally, we show that firms may voluntarily reveal their information.
    Keywords: contest, innovation, information revelation
    JEL: O32 D82 D72
    Date: 2010–09

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