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Incentives for separation and incentives for public good provision

✍ Scribed by Klaas Staal

Publisher: Springer US
Year: 2009
Tongue: English
Weight: 543 KB
Volume: 145
Category: Article
ISSN: 0048-5829
DOI: 10.1007/s11127-009-9578-9

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## Abstract Cost‐reducing investments by firms are often not publicly observable. This lack of observability would preclude a strategic use of process innovation. However, we show that an observable and verifiable contract that provides direct monetary incentives for cost reductions — an innovation