Journal of Political Economy · 2017 · 154 citations · 48 references
Social SciencesDecision SciencesEconomicsExperimental EconomicsGame TheoryInnovationIncentive CompatibilityInformation RevelationLearning In ExperimentsMechanism DesignSecret SharingBargaining With Private InformationDisclosure GamesInformation Disclosure IncentivesInnovation ContestsStrategyproof MechanismsWinner-take-all CompetitionWinner-take-all IncentivesWinner-take-all Markets
We study contests for innovation with learning about the innovation’s feasibility and opponents’ outcomes. We characterize contests that maximize innovation when the designer chooses a prize-sharing scheme and a disclosure policy. A “public winner-takes-all” contest dominates public contests—where any success is immediately disclosed—with any other prize-sharing scheme as well as winner-takes-all contests with any other disclosure policy. Yet, jointly modifying prize sharing and disclosure can increase innovation. In a broad class of mechanisms, it is optimal to share the prize with disclosure following a certain number of successes; under simple conditions, a “hidden equal-sharing” contest is optimal.
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Gustavo Manso · The Journal of Finance · 2011 · 1.9K citations · Full text
Management, Innovation Management, Executive Compensation +16
Market Structure and Innovation
Glenn C. Loury · The Quarterly Journal of Economics · 1979 · 1.2K citations
The Optimal Allocation of Prizes in Contests
Benny Moldovanu, Aner Sela · American Economic Review · 2001 · 897 citations