Spillover Effects - An Incentive to Cooperate in R&D?

WIC Contract Spillover Effects

Under the U.S. Special Nutrition Program for Women, Infants, and Children (WIC) program, the three major infant formula manufacturers compete for WIC supply contracts, state by state. Policy makers have been puzzled by why the contracted WIC price is extremely low compared to the non-WIC price. Our explanation is that winning the WIC contract is extremely valuable to a manufacturer because of a...

Incentive effects of funding contracts: an experiment

We examine the incentive effects of funding contracts on entrepreneurial effort and on allocative efficiency. We experiment with funding contracts that differ in the structure of investor repayment and, thus, in their incentives for the provision of entrepreneurial effort. Theoretically the replacement of a standard debt contract by a repayment-equivalent non-monotonic contract reduces effort d...

Informative Advertising with Spillover Effects∗

This paper studies the effects of advertising in a Bertrand duopoly model with informative advertising, which is an extension of Grossman and Shapiro (1984). It introduces spillover advertising effects on top of the direct advertising effects. Also, the model involves R&D activities, which make the model dynamical. It is shown that the spillover effects would make the environment more monopolis...

To Cooperate or Not to Cooperate

Research on Spillover Effects in Financial Risk

The research on spillover effect in financial markets is frontier theory and technology. The global financial crisis of 2007-2009 affects the stock markets deeply. But, the economic consequences are different among some cross-markets. As an emerging high-speed growth securities market established in 1990, the Chinese securities market has developed significantly. Again in the current internatio...