Awarding Scarce Ideas in Innovation Contests
نویسندگان
چکیده
This paper studies the relationship between optimal award and scarcity of ideas in innovation contests. We consider contests with different distributions of idea qualities and conduct comparative static analysis of optimal – revenue maximizing – awards with respect to the distributions. We find that a distribution with scarcer ideas leads to higher optimal awards if the marginal value of innovation quality is low, and it leads to lower optimal awards if the marginal value is high. JEL classification: D44, D82, O31
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