The Library
Asymmetric multistage models of R&D : technology adoption, contracts and protection
Tools
Ho, Shirley Jin-Shien (1997) Asymmetric multistage models of R&D : technology adoption, contracts and protection. PhD thesis, University of Warwick.
|
PDF
WRAP_Theses_Ho_1997.pdf - Submitted Version - Requires a PDF viewer. Download (5Mb) | Preview |
Official URL: http://webcat.warwick.ac.uk/record=b3226023~S15
Abstract
This thesis consists of three individual models on technology adoption, contracts and protection. The first model is motivated by the inconsistency between empirical results and theoretical models regarding the firm size effects upon the timing of adoption. By proposing a two-stage, endogenous learning, Stackelberg model, we conclude that in a pure strategy equilibrium, the large firm may or may not tacitly delay its adoption to capture the information advantage, depending on cost and belief parameters. The welfare analysis provides a justification for government interventions in firms’ adoption decisions.
The second model is motivated by the fact that although more and more resources have been devoted to R&D activities, there is little theoretical discussion regarding R&D funding issues. Chapter 3 derives the optimal funding contract, which happens to be a cost-plus-fixed-fee contract in the literature. After considering the adverse selection problem, the optimal contract induces no efficiency loss under both discrete and continuous settings and the principal will be more conservative in funding. The optimal auction maintains both allocation and production efficiency, and bidding the principal’s reservation price will be a dominant strategy in a second price auction. Neither the revenue equivalence nor the separation property will hold. With symmetric beliefs, the optimal funding length is shorter than that of contractible effort. Under some assumptions, the lock-in effect persists and the principal will prefer short-term contracts to long-term contracts.
The third model decides the optimal protection forms, protection rates and protection lengths under various cost and revenue circumstances. Since the incentive scheme will be affected by the target firm’s future profits, we show that in the context of incomplete information, screening protection schemes can sometimes coincide with the efficient schemes. In R&D area, our result suggests that optimal patent length need not necessarily be increasing in firm’s investment efficiency.
Item Type: | Thesis (PhD) | ||||
---|---|---|---|---|---|
Subjects: | H Social Sciences > HB Economic Theory | ||||
Library of Congress Subject Headings (LCSH): | Research, Industrial -- Economic aspects, Technological innovations -- Economic aspects, Research and development contracts -- Economic aspects | ||||
Official Date: | November 1997 | ||||
Dates: |
|
||||
Institution: | University of Warwick | ||||
Theses Department: | Department of Economics | ||||
Thesis Type: | PhD | ||||
Publication Status: | Unpublished | ||||
Supervisor(s)/Advisor: | Thomas, Jonathan P. | ||||
Sponsors: | China. Jiao yu bu | ||||
Format of File: | |||||
Extent: | iv, 183 leaves : illustrations, charts | ||||
Language: | eng |
Request changes or add full text files to a record
Repository staff actions (login required)
View Item |
Downloads
Downloads per month over past year