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QED R&D contracts

Book ID: 104368758
Publisher: Elsevier Science
Year: 1996
Tongue: English
Weight: 184 KB
Volume: 9
Category: Article
ISSN: 0961-1290
DOI: 10.1016/s0961-1290(96)80228-6

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Using a two-stage model, this paper studies auctions of research and development (R&D) contracts when the outcome of research is uncertain. The agent is contracted by the principal to invent a new product or a new process. The principal selects the most capable agent through an auction and writes an