Skip to content Skip to navigation
University of Warwick
  • Study
  • |
  • Research
  • |
  • Business
  • |
  • Alumni
  • |
  • News
  • |
  • About

University of Warwick
Publications service & WRAP

Highlight your research

  • WRAP
    • Home
    • Search WRAP
    • Browse by Warwick Author
    • Browse WRAP by Year
    • Browse WRAP by Subject
    • Browse WRAP by Department
    • Browse WRAP by Funder
    • Browse Theses by Department
  • Publications Service
    • Home
    • Search Publications Service
    • Browse by Warwick Author
    • Browse Publications service by Year
    • Browse Publications service by Subject
    • Browse Publications service by Department
    • Browse Publications service by Funder
  • Help & Advice
University of Warwick

The Library

  • Login
  • Admin

Experimentation in dynamic R&D competition

Tools
- Tools
+ Tools

Dosis, Anastasios and Muthoo, Abhinay (2019) Experimentation in dynamic R&D competition. Working Paper. Coventry: University of Warwick. Department of Economics. Warwick economics research papers series (WERPS) (1214). (Unpublished)

[img]
Preview
PDF
WRAP-twerp-1214-Muthoo-2019.pdf - Published Version - Requires a PDF viewer.

Download (1051Kb) | Preview
Official URL: https://warwick.ac.uk/fac/soc/economics/research/w...

Request Changes to record.

Abstract

We study a two-stage, winner-takes-all, R&D race, in which, at the outset, firms are uncertain regarding the viability of the project. Learning through experimentation introduces a bilateral (dynamic) feedback mechanism. For relatively low-value products, the equilibrium stopping time coincides with the socially efficient stopping time although firms might experiment excessively in equilibrium; for relatively high-value products, firms might reduce experimentation and stop rather prematurely due to the fundamental free-riding effect. Perhaps surprisingly, a decrease in the value of the product can spur experimentation

Item Type: Working or Discussion Paper (Working Paper)
Subjects: H Social Sciences > HC Economic History and Conditions
Divisions: Faculty of Social Sciences > Economics
Library of Congress Subject Headings (LCSH): Technological innovations -- Economic aspects, Competition, Research -- Economic aspects, New products -- Management
Series Name: Warwick economics research papers series (WERPS)
Publisher: University of Warwick. Department of Economics
Place of Publication: Coventry
ISSN: 0083-7350
Official Date: July 2019
Dates:
DateEvent
July 2019Published
Number: 1214
Number of Pages: 19
Institution: University of Warwick
Status: Not Peer Reviewed
Publication Status: Unpublished
Access rights to Published version: Open Access
Description:

This paper also appears as CRETA Discussion paper 52

Request changes or add full text files to a record

Repository staff actions (login required)

View Item View Item

Downloads

Downloads per month over past year

View more statistics

twitter

Email us: wrap@warwick.ac.uk
Contact Details
About Us