Promising the right prize
type: Dataset
description: Prizes are often awarded to encourage research on products deemed of vital importance. We present a mechanism which can, in situations where the innovators are better informed about the difficulty of the research, tailor perfectly the expected reward to the expected research costs. The idea is to let the first successful inventor trade off the risk of having a competitor share the reward in exchange for a higher prize. If the goal of the designer is to minimize the prize awarded whilst encouraging innovators to conduct research, such a mechanism achieves the first best.
issued: 2026-05-05T16:59:09.356279
language: en
modified: 2026-05-05T16:59:09.356283
contact point: Organization
  fn: CCSD
keyword: infoeu-reposemanticspreprint
keyword: innovation-race
keyword: jel-o---economic-development-innovation-technological-change-and-growthoo3---innovation--rese
keyword: market-commitment-mechanism
keyword: mechanism-design
keyword: preprints-working-papers-
keyword: prizes-and-sorting
keyword: shsecohumanities-and-social-scienceseconomics-and-finance
landing page: https://sciencespo.hal.science/hal-00972957

Promising the right prize
type: Distribution
format: HTML
issued: 2026-05-05T16:59:09.357662
modified: 2026-05-05T16:59:09.344150
access URL: https://sciencespo.hal.science/hal-00972957

test_moissonnage_selune
type: Agent