Competitive experimentation with private information: The survivor's curse

A-Tier
Journal: Journal of Economic Theory
Year: 2010
Volume: 145
Issue: 2
Pages: 639-660

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

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

Abstract

We study a winner-take-all R&D race between two firms that are privately informed about the arrival rate of an invention. Over time, each firm only observes whether the opponent left the race or not. The equilibrium displays a strong herding effect, that we call a 'survivor's curse.' Unlike in the case of symmetric information, the two firms may quit the race (nearly) simultaneously even when their costs and benefits for research differ significantly.

Technical Details

RePEc Handle
repec:eee:jetheo:v:145:y:2010:i:2:p:639-660
Journal Field
Theory
Author Count
2
Added to Database
2026-01-26