Coupling Information Disclosure with a Quality Standard in R&D Contests

A-Tier
Journal: Journal of Industrial Economics
Year: 2024
Volume: 72
Issue: 3
Pages: 1299-1337

Authors (4)

Gaoyang Cai (not in RePEc) Qian Jiao (not in RePEc) Jingfeng Lu (National University of Singapo...) Jie Zheng (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 4 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We study two‐player R&D contest design using both an information disclosure policy and a quality standard as instruments. The ability of an innovator is known only to himself. The organizer commits ex‐ante to a minimum quality standard and whether to have innovators' abilities publicly revealed before they conduct R&D activities. We find that without quality standards, fully concealing innovators' abilities elicits both higher expected aggregate quality and expected highest quality. With optimally set quality standards, although fully concealing ability information still elicits higher expected aggregate quality, fully disclosing this information leads to a higher level of expected highest quality. Moreover, the optimal quality standards are compared across different objectives and disclosure policies.

Technical Details

RePEc Handle
repec:bla:jindec:v:72:y:2024:i:3:p:1299-1337
Journal Field
Industrial Organization
Author Count
4
Added to Database
2026-01-25