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Patent-investment games under asymmetric information

✍ Scribed by Leung, Chi Man; Kwok, Yue Kuen


Book ID
119234502
Publisher
Elsevier Science
Year
2012
Tongue
English
Weight
640 KB
Volume
223
Category
Article
ISSN
0377-2217

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We study the cost-of-adjustment model of investment when there is asymmetry of information between owners (the principal) and managers (the agent). Information asymmetry distorts the relationship between investment and the cost of capital for all agent types, and a regime of inaction appears over a